Correlation Between Alstria Office and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Agricultural Bank 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 Agricultural Bank 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 Agricultural Bank of, you can compare the effects of market volatilities on Alstria Office and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Agricultural Bank.
Diversification Opportunities for Alstria Office and Agricultural Bank
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alstria and Agricultural is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Alstria Office i.e., Alstria Office and Agricultural Bank go up and down completely randomly.
Pair Corralation between Alstria Office and Agricultural Bank
Assuming the 90 days horizon Alstria Office is expected to generate 13.59 times less return on investment than Agricultural Bank. But when comparing it to its historical volatility, alstria office REIT AG is 2.83 times less risky than Agricultural Bank. It trades about 0.02 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9.25 in Agricultural Bank of on October 30, 2024 and sell it today you would earn a total of 42.75 from holding Agricultural Bank of or generate 462.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Agricultural Bank of
Performance |
| Timeline |
| alstria office REIT |
| Agricultural Bank |
Alstria Office and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Agricultural Bank
The main advantage of trading using opposite Alstria Office and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Alstria Office vs. Digital Realty Trust | Alstria Office vs. Gecina SA | Alstria Office vs. Japan Real Estate | Alstria Office vs. SL Green Realty |
| Agricultural Bank vs. Allegheny Technologies Incorporated | Agricultural Bank vs. WESANA HEALTH HOLD | Agricultural Bank vs. Playtech plc | Agricultural Bank vs. AAC TECHNOLOGHLDGADR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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