Correlation Between Alstria Office and Apple
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Alstria Office and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Apple.
Diversification Opportunities for Alstria Office and Apple
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alstria and Apple is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Alstria Office i.e., Alstria Office and Apple go up and down completely randomly.
Pair Corralation between Alstria Office and Apple
Assuming the 90 days horizon alstria office REIT AG is expected to generate 0.34 times more return on investment than Apple. However, alstria office REIT AG is 2.93 times less risky than Apple. It trades about 0.25 of its potential returns per unit of risk. Apple Inc is currently generating about -0.1 per unit of risk. If you would invest 536.00 in alstria office REIT AG on November 9, 2024 and sell it today you would earn a total of 22.00 from holding alstria office REIT AG or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Apple Inc
Performance |
| Timeline |
| alstria office REIT |
| Apple Inc |
Alstria Office and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Apple
The main advantage of trading using opposite Alstria Office and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Alstria Office vs. GUARDANT HEALTH CL | Alstria Office vs. Planet Fitness | Alstria Office vs. JAPAN TOBACCO UNSPADR12 | Alstria Office vs. EITZEN CHEMICALS |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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