Correlation Between Alfa Financial and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Alfa Financial 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 Alfa Financial and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and alstria office REIT AG, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and Alstria Office.
Diversification Opportunities for Alfa Financial and Alstria Office
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alfa and Alstria is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software 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 Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and Alstria Office go up and down completely randomly.
Pair Corralation between Alfa Financial and Alstria Office
Assuming the 90 days trading horizon Alfa Financial is expected to generate 8.85 times less return on investment than Alstria Office. But when comparing it to its historical volatility, Alfa Financial Software is 5.59 times less risky than Alstria Office. It trades about 0.07 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 165.00 in alstria office REIT AG on October 14, 2024 and sell it today you would earn a total of 370.00 from holding alstria office REIT AG or generate 224.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. alstria office REIT AG
Performance |
| Timeline |
| Alfa Financial Software |
| alstria office REIT |
Alfa Financial and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and Alstria Office
The main advantage of trading using opposite Alfa Financial and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Charter Communications Cl | Alfa Financial vs. STMicroelectronics NV | Alfa Financial vs. CAP LEASE AVIATION | Alfa Financial vs. Zoom Video Communications |
| Alstria Office vs. Charter Communications Cl | Alstria Office vs. Zoom Video Communications | Alstria Office vs. Cairo Communication SpA | Alstria Office vs. Zegona Communications Plc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |