Correlation Between Alstria Office and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Yanzhou Coal 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 Yanzhou Coal 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 Yanzhou Coal Mining, you can compare the effects of market volatilities on Alstria Office and Yanzhou Coal 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 Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Yanzhou Coal.
Diversification Opportunities for Alstria Office and Yanzhou Coal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alstria and Yanzhou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining 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 Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of Alstria Office i.e., Alstria Office and Yanzhou Coal go up and down completely randomly.
Pair Corralation between Alstria Office and Yanzhou Coal
Assuming the 90 days horizon alstria office REIT AG is expected to under-perform the Yanzhou Coal. In addition to that, Alstria Office is 3.89 times more volatile than Yanzhou Coal Mining. It trades about -0.22 of its total potential returns per unit of risk. Yanzhou Coal Mining is currently generating about -0.2 per unit of volatility. If you would invest 1,050 in Yanzhou Coal Mining on October 30, 2024 and sell it today you would lose (70.00) from holding Yanzhou Coal Mining or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Yanzhou Coal Mining
Performance |
| Timeline |
| alstria office REIT |
| Yanzhou Coal Mining |
Alstria Office and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Yanzhou Coal
The main advantage of trading using opposite Alstria Office and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal'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 |
| Yanzhou Coal vs. ONWARD MEDICAL BV | Yanzhou Coal vs. MICRONIC MYDATA | Yanzhou Coal vs. CVR Medical Corp | Yanzhou Coal vs. PULSION Medical Systems |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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