Correlation Between FRASERS PROPERTY and Immofinanz
Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and Immofinanz 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 FRASERS PROPERTY and Immofinanz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRASERS PROPERTY and Immofinanz AG, you can compare the effects of market volatilities on FRASERS PROPERTY and Immofinanz 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 FRASERS PROPERTY with a short position of Immofinanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and Immofinanz.
Diversification Opportunities for FRASERS PROPERTY and Immofinanz
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FRASERS and Immofinanz is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and Immofinanz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofinanz AG and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with Immofinanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofinanz AG has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and Immofinanz go up and down completely randomly.
Pair Corralation between FRASERS PROPERTY and Immofinanz
Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 1.05 times less return on investment than Immofinanz. But when comparing it to its historical volatility, FRASERS PROPERTY is 1.07 times less risky than Immofinanz. It trades about 0.15 of its potential returns per unit of risk. Immofinanz AG is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Immofinanz AG on September 1, 2024 and sell it today you would earn a total of 78.00 from holding Immofinanz AG or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRASERS PROPERTY vs. Immofinanz AG
Performance |
| Timeline |
| FRASERS PROPERTY |
| Immofinanz AG |
FRASERS PROPERTY and Immofinanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRASERS PROPERTY and Immofinanz
The main advantage of trading using opposite FRASERS PROPERTY and Immofinanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRASERS PROPERTY position performs unexpectedly, Immofinanz 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 Immofinanz will offset losses from the drop in Immofinanz's long position.| FRASERS PROPERTY vs. OPEN HOUSE GROUP | FRASERS PROPERTY vs. Superior Plus Corp | FRASERS PROPERTY vs. NMI Holdings | FRASERS PROPERTY vs. Origin Agritech |
| Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. Superior Plus Corp | Immofinanz vs. NMI Holdings | Immofinanz vs. Origin Agritech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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