Correlation Between Alstria Office and Identiv
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on Alstria Office and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Identiv.
Diversification Opportunities for Alstria Office and Identiv
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alstria and Identiv is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Alstria Office i.e., Alstria Office and Identiv go up and down completely randomly.
Pair Corralation between Alstria Office and Identiv
Assuming the 90 days horizon alstria office REIT AG is expected to generate 0.75 times more return on investment than Identiv. However, alstria office REIT AG is 1.34 times less risky than Identiv. It trades about 0.02 of its potential returns per unit of risk. Identiv is currently generating about -0.02 per unit of risk. If you would invest 522.00 in alstria office REIT AG on October 26, 2024 and sell it today you would earn a total of 24.00 from holding alstria office REIT AG or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
alstria office REIT AG vs. Identiv
Performance |
| Timeline |
| alstria office REIT |
| Identiv |
Alstria Office and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Identiv
The main advantage of trading using opposite Alstria Office and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| Alstria Office vs. CDN IMPERIAL BANK | Alstria Office vs. Diamyd Medical AB | Alstria Office vs. British American Tobacco | Alstria Office vs. UNIQA INSURANCE GR |
| Identiv vs. KIMBALL ELECTRONICS | Identiv vs. BW OFFSHORE LTD | Identiv vs. UMC Electronics Co | Identiv vs. UNITED UTILITIES GR |
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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