Correlation Between Alstria Office and Public Storage
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on Alstria Office and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Public Storage.
Diversification Opportunities for Alstria Office and Public Storage
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alstria and Public is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Alstria Office i.e., Alstria Office and Public Storage go up and down completely randomly.
Pair Corralation between Alstria Office and Public Storage
Assuming the 90 days trading horizon alstria office REIT AG is expected to generate 1.82 times more return on investment than Public Storage. However, Alstria Office is 1.82 times more volatile than Public Storage. It trades about 0.04 of its potential returns per unit of risk. Public Storage is currently generating about 0.03 per unit of risk. If you would invest 529.00 in alstria office REIT AG on September 23, 2024 and sell it today you would earn a total of 232.00 from holding alstria office REIT AG or generate 43.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Public Storage
Performance |
| Timeline |
| alstria office REIT |
| Public Storage |
Alstria Office and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Public Storage
The main advantage of trading using opposite Alstria Office and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage'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 |
| Public Storage vs. Premier Foods PLC | Public Storage vs. Eco Animal Health | Public Storage vs. Grieg Seafood | Public Storage vs. Naturhouse Health SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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