Correlation Between Alstria Office and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Alstria Office and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on Alstria Office and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and PARKEN Sport.
Diversification Opportunities for Alstria Office and PARKEN Sport
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alstria and PARKEN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Alstria Office i.e., Alstria Office and PARKEN Sport go up and down completely randomly.
Pair Corralation between Alstria Office and PARKEN Sport
Assuming the 90 days horizon alstria office REIT AG is expected to generate 0.92 times more return on investment than PARKEN Sport. However, alstria office REIT AG is 1.09 times less risky than PARKEN Sport. It trades about 0.25 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.13 per unit of risk. If you would invest 684.00 in alstria office REIT AG on September 21, 2024 and sell it today you would earn a total of 76.00 from holding alstria office REIT AG or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| alstria office REIT |
| PARKEN Sport Enterta |
Alstria Office and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and PARKEN Sport
The main advantage of trading using opposite Alstria Office and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| Alstria Office vs. Ribbon Communications | Alstria Office vs. Live Nation Entertainment | Alstria Office vs. Cogent Communications Holdings | Alstria Office vs. Iridium Communications |
| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Charter Communications | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. SIVERS SEMICONDUCTORS AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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