Correlation Between Alstria Office and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Alstria Office and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Blackstone Loan.
Diversification Opportunities for Alstria Office and Blackstone Loan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alstria and Blackstone is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Alstria Office i.e., Alstria Office and Blackstone Loan go up and down completely randomly.
Pair Corralation between Alstria Office and Blackstone Loan
Assuming the 90 days trading horizon alstria office REIT AG is expected to generate 4.83 times more return on investment than Blackstone Loan. However, Alstria Office is 4.83 times more volatile than Blackstone Loan Financing. It trades about 0.25 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about -0.22 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 Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
alstria office REIT AG vs. Blackstone Loan Financing
Performance |
Timeline |
alstria office REIT |
Blackstone Loan Financing |
Alstria Office and Blackstone Loan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alstria Office and Blackstone Loan
The main advantage of trading using opposite Alstria Office and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan'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 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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