Correlation Between Alstria Office and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Alstria Office and Fidelity National 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 Fidelity National 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 Fidelity National Information, you can compare the effects of market volatilities on Alstria Office and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Fidelity National.
Diversification Opportunities for Alstria Office and Fidelity National
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alstria and Fidelity is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Alstria Office i.e., Alstria Office and Fidelity National go up and down completely randomly.
Pair Corralation between Alstria Office and Fidelity National
Assuming the 90 days horizon alstria office REIT AG is expected to generate 1.61 times more return on investment than Fidelity National. However, Alstria Office is 1.61 times more volatile than Fidelity National Information. It trades about 0.04 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.04 per unit of risk. If you would invest 542.00 in alstria office REIT AG on September 19, 2024 and sell it today you would earn a total of 222.00 from holding alstria office REIT AG or generate 40.96% 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. Fidelity National Information
Performance |
| Timeline |
| alstria office REIT |
| Fidelity National |
Alstria Office and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Fidelity National
The main advantage of trading using opposite Alstria Office and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Alstria Office vs. ORIX JREIT INC | Alstria Office vs. Superior Plus Corp | Alstria Office vs. SIVERS SEMICONDUCTORS AB | Alstria Office vs. Norsk Hydro ASA |
| Fidelity National vs. alstria office REIT AG | Fidelity National vs. PT Global Mediacom | Fidelity National vs. GigaMedia | Fidelity National vs. 24SEVENOFFICE GROUP AB |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |