Correlation Between Deutsche Wohnen and Greenland Hong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Deutsche Wohnen SE and Greenland Hong Kong, you can compare the effects of market volatilities on Deutsche Wohnen and Greenland Hong 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 Deutsche Wohnen with a short position of Greenland Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Wohnen and Greenland Hong.
Diversification Opportunities for Deutsche Wohnen and Greenland Hong
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Deutsche and Greenland is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Wohnen SE and Greenland Hong Kong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Hong Kong and Deutsche Wohnen 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 Deutsche Wohnen SE are associated (or correlated) with Greenland Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Hong Kong has no effect on the direction of Deutsche Wohnen i.e., Deutsche Wohnen and Greenland Hong go up and down completely randomly.
Pair Corralation between Deutsche Wohnen and Greenland Hong
Assuming the 90 days trading horizon Deutsche Wohnen SE is expected to under-perform the Greenland Hong. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Wohnen SE is 18.35 times less risky than Greenland Hong. The stock trades about -0.06 of its potential returns per unit of risk. The Greenland Hong Kong is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.65 in Greenland Hong Kong on September 23, 2024 and sell it today you would earn a total of 2.50 from holding Greenland Hong Kong or generate 384.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Wohnen SE vs. Greenland Hong Kong
Performance |
Timeline |
Deutsche Wohnen SE |
Greenland Hong Kong |
Deutsche Wohnen and Greenland Hong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Wohnen and Greenland Hong
The main advantage of trading using opposite Deutsche Wohnen and Greenland Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Wohnen position performs unexpectedly, Greenland Hong 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 Greenland Hong will offset losses from the drop in Greenland Hong's long position.Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. TIMES CHINA HLDGS | Deutsche Wohnen vs. LANDSEA HOMES P | Deutsche Wohnen vs. Greenland Hong Kong |
Greenland Hong vs. Deutsche Wohnen SE | Greenland Hong vs. Gateway Real Estate | Greenland Hong vs. TIMES CHINA HLDGS | Greenland Hong vs. LANDSEA HOMES P |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |