Correlation Between Alstria Office and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Mobilezone Holding 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 Mobilezone Holding 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 Mobilezone Holding AG, you can compare the effects of market volatilities on Alstria Office and Mobilezone Holding 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 Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Mobilezone Holding.
Diversification Opportunities for Alstria Office and Mobilezone Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alstria and Mobilezone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Mobilezone Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobilezone Holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobilezone Holding has no effect on the direction of Alstria Office i.e., Alstria Office and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Alstria Office and Mobilezone Holding
Assuming the 90 days horizon alstria office REIT AG is expected to generate 5.2 times more return on investment than Mobilezone Holding. However, Alstria Office is 5.2 times more volatile than Mobilezone Holding AG. It trades about 0.07 of its potential returns per unit of risk. Mobilezone Holding AG is currently generating about 0.06 per unit of risk. If you would invest 356.00 in alstria office REIT AG on November 3, 2024 and sell it today you would earn a total of 196.00 from holding alstria office REIT AG or generate 55.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Mobilezone Holding AG
Performance |
| Timeline |
| alstria office REIT |
| Mobilezone Holding |
Alstria Office and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Mobilezone Holding
The main advantage of trading using opposite Alstria Office and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| Alstria Office vs. Digital Realty Trust | Alstria Office vs. Gecina SA | Alstria Office vs. Japan Real Estate | Alstria Office vs. Mirvac Group |
| Mobilezone Holding vs. SIVERS SEMICONDUCTORS AB | Mobilezone Holding vs. NorAm Drilling AS | Mobilezone Holding vs. Volkswagen AG | Mobilezone Holding vs. Darden Restaurants |
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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