Correlation Between Alstria Office and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Alstria Office and McEwen Mining 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 McEwen Mining 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 McEwen Mining, you can compare the effects of market volatilities on Alstria Office and McEwen Mining 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 McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and McEwen Mining.
Diversification Opportunities for Alstria Office and McEwen Mining
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alstria and McEwen is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining 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 McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Alstria Office i.e., Alstria Office and McEwen Mining go up and down completely randomly.
Pair Corralation between Alstria Office and McEwen Mining
Assuming the 90 days trading horizon alstria office REIT AG is expected to generate 0.45 times more return on investment than McEwen Mining. However, alstria office REIT AG is 2.23 times less risky than McEwen Mining. It trades about 0.25 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.01 per unit of risk. If you would invest 700.00 in alstria office REIT AG on September 24, 2024 and sell it today you would earn a total of 61.00 from holding alstria office REIT AG or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. McEwen Mining
Performance |
| Timeline |
| alstria office REIT |
| McEwen Mining |
Alstria Office and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and McEwen Mining
The main advantage of trading using opposite Alstria Office and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Alstria Office vs. Optima Health plc | Alstria Office vs. HCA Healthcare | Alstria Office vs. Cardinal Health | Alstria Office vs. Fevertree Drinks Plc |
| McEwen Mining vs. Fortune Brands Home | McEwen Mining vs. alstria office REIT AG | McEwen Mining vs. bet at home AG | McEwen Mining vs. Zoom Video Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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