Correlation Between Haier Smart and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Haier Smart and Alstria Office 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 Haier Smart and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and alstria office REIT AG, you can compare the effects of market volatilities on Haier Smart and Alstria Office 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 Haier Smart with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Alstria Office.
Diversification Opportunities for Haier Smart and Alstria Office
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haier and Alstria is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and Haier Smart 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 Haier Smart Home are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Haier Smart i.e., Haier Smart and Alstria Office go up and down completely randomly.
Pair Corralation between Haier Smart and Alstria Office
Assuming the 90 days trading horizon Haier Smart is expected to generate 1.06 times less return on investment than Alstria Office. But when comparing it to its historical volatility, Haier Smart Home is 1.95 times less risky than Alstria Office. It trades about 0.12 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 337.00 in alstria office REIT AG on October 16, 2024 and sell it today you would earn a total of 197.00 from holding alstria office REIT AG or generate 58.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. alstria office REIT AG
Performance |
| Timeline |
| Haier Smart Home |
| alstria office REIT |
Haier Smart and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Alstria Office
The main advantage of trading using opposite Haier Smart and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Haier Smart vs. PLANT VEDA FOODS | Haier Smart vs. Algonquin Power Utilities | Haier Smart vs. Austevoll Seafood ASA | Haier Smart vs. Canadian Utilities Limited |
| Alstria Office vs. United Airlines Holdings | Alstria Office vs. BJs Restaurants | Alstria Office vs. MOVIE GAMES SA | Alstria Office vs. Aegean Airlines 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |