Correlation Between Alstria Office and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Alstria Office and CENTURIA 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 Alstria Office and CENTURIA OFFICE 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 CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Alstria Office and CENTURIA 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 Alstria Office with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and CENTURIA OFFICE.
Diversification Opportunities for Alstria Office and CENTURIA OFFICE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alstria and CENTURIA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT 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 CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of Alstria Office i.e., Alstria Office and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Alstria Office and CENTURIA OFFICE
Assuming the 90 days horizon alstria office REIT AG is expected to generate 1.7 times more return on investment than CENTURIA OFFICE. However, Alstria Office is 1.7 times more volatile than CENTURIA OFFICE REIT. It trades about 0.04 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.0 per unit of risk. If you would invest 542.00 in alstria office REIT AG on September 19, 2024 and sell it today you would earn a total of 222.00 from holding alstria office REIT AG or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| alstria office REIT |
| CENTURIA OFFICE REIT |
Alstria Office and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and CENTURIA OFFICE
The main advantage of trading using opposite Alstria Office and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, CENTURIA 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| Alstria Office vs. ORIX JREIT INC | Alstria Office vs. Superior Plus Corp | Alstria Office vs. SIVERS SEMICONDUCTORS AB | Alstria Office vs. Norsk Hydro ASA |
| CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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