Correlation Between Aedas Homes and Gesundheitswelt Chiemgau
Can any of the company-specific risk be diversified away by investing in both Aedas Homes and Gesundheitswelt Chiemgau 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 Aedas Homes and Gesundheitswelt Chiemgau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedas Homes SA and Gesundheitswelt Chiemgau AG, you can compare the effects of market volatilities on Aedas Homes and Gesundheitswelt Chiemgau 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 Aedas Homes with a short position of Gesundheitswelt Chiemgau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and Gesundheitswelt Chiemgau.
Diversification Opportunities for Aedas Homes and Gesundheitswelt Chiemgau
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aedas and Gesundheitswelt is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SA and Gesundheitswelt Chiemgau AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gesundheitswelt Chiemgau and Aedas Homes 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 Aedas Homes SA are associated (or correlated) with Gesundheitswelt Chiemgau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gesundheitswelt Chiemgau has no effect on the direction of Aedas Homes i.e., Aedas Homes and Gesundheitswelt Chiemgau go up and down completely randomly.
Pair Corralation between Aedas Homes and Gesundheitswelt Chiemgau
Assuming the 90 days horizon Aedas Homes SA is expected to under-perform the Gesundheitswelt Chiemgau. In addition to that, Aedas Homes is 1.36 times more volatile than Gesundheitswelt Chiemgau AG. It trades about 0.0 of its total potential returns per unit of risk. Gesundheitswelt Chiemgau AG is currently generating about 0.09 per unit of volatility. If you would invest 1,220 in Gesundheitswelt Chiemgau AG on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Gesundheitswelt Chiemgau AG or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aedas Homes SA vs. Gesundheitswelt Chiemgau AG
Performance |
| Timeline |
| Aedas Homes SA |
| Gesundheitswelt Chiemgau |
Aedas Homes and Gesundheitswelt Chiemgau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedas Homes and Gesundheitswelt Chiemgau
The main advantage of trading using opposite Aedas Homes and Gesundheitswelt Chiemgau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes position performs unexpectedly, Gesundheitswelt Chiemgau 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 Gesundheitswelt Chiemgau will offset losses from the drop in Gesundheitswelt Chiemgau's long position.| Aedas Homes vs. Global Ship Lease | Aedas Homes vs. BOS BETTER ONLINE | Aedas Homes vs. SALESFORCE INC CDR | Aedas Homes vs. AIR PRODCHEMICALS |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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