Correlation Between Alstria Office and CHINA EAST
Can any of the company-specific risk be diversified away by investing in both Alstria Office and CHINA EAST 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 CHINA EAST 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 CHINA EAST ED, you can compare the effects of market volatilities on Alstria Office and CHINA EAST 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 CHINA EAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and CHINA EAST.
Diversification Opportunities for Alstria Office and CHINA EAST
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alstria and CHINA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and CHINA EAST ED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EAST ED 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 CHINA EAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EAST ED has no effect on the direction of Alstria Office i.e., Alstria Office and CHINA EAST go up and down completely randomly.
Pair Corralation between Alstria Office and CHINA EAST
Assuming the 90 days horizon alstria office REIT AG is expected to generate 0.78 times more return on investment than CHINA EAST. However, alstria office REIT AG is 1.28 times less risky than CHINA EAST. It trades about 0.24 of its potential returns per unit of risk. CHINA EAST ED is currently generating about 0.01 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 Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
alstria office REIT AG vs. CHINA EAST ED
Performance |
Timeline |
alstria office REIT |
CHINA EAST ED |
Alstria Office and CHINA EAST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alstria Office and CHINA EAST
The main advantage of trading using opposite Alstria Office and CHINA EAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, CHINA EAST 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 CHINA EAST will offset losses from the drop in CHINA EAST'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 |
CHINA EAST vs. IDP EDUCATION LTD | CHINA EAST vs. TAL Education Group | CHINA EAST vs. Grand Canyon Education | CHINA EAST vs. Graham Holdings Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |