Correlation Between Alstria Office and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Alstria Office and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on Alstria Office and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and TRADEGATE.
Diversification Opportunities for Alstria Office and TRADEGATE
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alstria and TRADEGATE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Alstria Office i.e., Alstria Office and TRADEGATE go up and down completely randomly.
Pair Corralation between Alstria Office and TRADEGATE
Assuming the 90 days horizon alstria office REIT AG is expected to generate 3.63 times more return on investment than TRADEGATE. However, Alstria Office is 3.63 times more volatile than TRADEGATE. It trades about 0.01 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.04 per unit of risk. If you would invest 533.00 in alstria office REIT AG on October 13, 2024 and sell it today you would earn a total of 1.00 from holding alstria office REIT AG or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. TRADEGATE
Performance |
| Timeline |
| alstria office REIT |
| TRADEGATE |
Alstria Office and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and TRADEGATE
The main advantage of trading using opposite Alstria Office and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| Alstria Office vs. Webster Financial | Alstria Office vs. United Insurance Holdings | Alstria Office vs. Osisko Metals | Alstria Office vs. JD SPORTS FASH |
| TRADEGATE vs. SYSTEMAIR AB | TRADEGATE vs. alstria office REIT AG | TRADEGATE vs. WIZZ AIR HLDGUNSPADR4 | TRADEGATE vs. Alaska Air Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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