Correlation Between Alstria Office and CN MODERN
Can any of the company-specific risk be diversified away by investing in both Alstria Office and CN MODERN 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 CN MODERN 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 CN MODERN DAIRY, you can compare the effects of market volatilities on Alstria Office and CN MODERN 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 CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and CN MODERN.
Diversification Opportunities for Alstria Office and CN MODERN
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alstria and 07M is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY 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 CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of Alstria Office i.e., Alstria Office and CN MODERN go up and down completely randomly.
Pair Corralation between Alstria Office and CN MODERN
Assuming the 90 days horizon alstria office REIT AG is expected to generate 1.04 times more return on investment than CN MODERN. However, Alstria Office is 1.04 times more volatile than CN MODERN DAIRY. It trades about 0.04 of its potential returns per unit of risk. CN MODERN DAIRY is currently generating about 0.03 per unit of risk. If you would invest 526.00 in alstria office REIT AG on September 25, 2024 and sell it today you would earn a total of 234.00 from holding alstria office REIT AG or generate 44.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. CN MODERN DAIRY
Performance |
| Timeline |
| alstria office REIT |
| CN MODERN DAIRY |
Alstria Office and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and CN MODERN
The main advantage of trading using opposite Alstria Office and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| Alstria Office vs. Materialise NV | Alstria Office vs. SANOK RUBBER ZY | Alstria Office vs. Sumitomo Rubber Industries | Alstria Office vs. Clean Energy Fuels |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |