Correlation Between Alstria Office and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Gecina SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alstria Office and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alstria office REIT AG and Gecina SA, you can compare the effects of market volatilities on Alstria Office and Gecina SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Alstria Office with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Gecina SA.
Diversification Opportunities for Alstria Office and Gecina SA
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alstria and Gecina is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Alstria Office is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on alstria office REIT AG are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Alstria Office i.e., Alstria Office and Gecina SA go up and down completely randomly.
Pair Corralation between Alstria Office and Gecina SA
Assuming the 90 days horizon alstria office REIT AG is expected to generate 1.67 times more return on investment than Gecina SA. However, Alstria Office is 1.67 times more volatile than Gecina SA. It trades about 0.24 of its potential returns per unit of risk. Gecina SA is currently generating about -0.23 per unit of risk. If you would invest 696.00 in alstria office REIT AG on September 25, 2024 and sell it today you would earn a total of 64.00 from holding alstria office REIT AG or generate 9.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
alstria office REIT AG vs. Gecina SA
Performance |
Timeline |
alstria office REIT |
Gecina SA |
Alstria Office and Gecina SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alstria Office and Gecina SA
The main advantage of trading using opposite Alstria Office and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Gecina SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gecina SA will offset losses from the drop in Gecina SA's long position.Alstria Office vs. Materialise NV | Alstria Office vs. SANOK RUBBER ZY | Alstria Office vs. Sumitomo Rubber Industries | Alstria Office vs. Clean Energy Fuels |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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