Correlation Between SQUIRREL MEDIA and Alstria Office
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Alstria Office 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 SQUIRREL MEDIA and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and alstria office REIT AG, you can compare the effects of market volatilities on SQUIRREL MEDIA and Alstria Office 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 SQUIRREL MEDIA with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Alstria Office.
Diversification Opportunities for SQUIRREL MEDIA and Alstria Office
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SQUIRREL and Alstria is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Alstria Office go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Alstria Office
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to under-perform the Alstria Office. But the stock apears to be less risky and, when comparing its historical volatility, SQUIRREL MEDIA SA is 2.78 times less risky than Alstria Office. The stock trades about -0.05 of its potential returns per unit of risk. The alstria office REIT AG is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 344.00 in alstria office REIT AG on October 19, 2024 and sell it today you would earn a total of 190.00 from holding alstria office REIT AG or generate 55.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. alstria office REIT AG
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| alstria office REIT |
SQUIRREL MEDIA and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Alstria Office
The main advantage of trading using opposite SQUIRREL MEDIA and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| SQUIRREL MEDIA vs. ANGANG STEEL H | SQUIRREL MEDIA vs. SPORT LISBOA E | SQUIRREL MEDIA vs. Nippon Steel | SQUIRREL MEDIA vs. Xiwang Special Steel |
| Alstria Office vs. Northern Data AG | Alstria Office vs. DATAGROUP SE | Alstria Office vs. Air New Zealand | Alstria Office vs. Fair Isaac Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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