Correlation Between CA Immobilien and S IMMO
Can any of the company-specific risk be diversified away by investing in both CA Immobilien and S IMMO 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 CA Immobilien and S IMMO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CA Immobilien Anlagen and S IMMO AG, you can compare the effects of market volatilities on CA Immobilien and S IMMO 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 CA Immobilien with a short position of S IMMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CA Immobilien and S IMMO.
Diversification Opportunities for CA Immobilien and S IMMO
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAI and SPI is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CA Immobilien Anlagen and S IMMO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S IMMO AG and CA Immobilien 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 CA Immobilien Anlagen are associated (or correlated) with S IMMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S IMMO AG has no effect on the direction of CA Immobilien i.e., CA Immobilien and S IMMO go up and down completely randomly.
Pair Corralation between CA Immobilien and S IMMO
Assuming the 90 days trading horizon CA Immobilien is expected to generate 1.48 times less return on investment than S IMMO. In addition to that, CA Immobilien is 5.31 times more volatile than S IMMO AG. It trades about 0.0 of its total potential returns per unit of risk. S IMMO AG is currently generating about 0.02 per unit of volatility. If you would invest 2,200 in S IMMO AG on August 26, 2024 and sell it today you would earn a total of 10.00 from holding S IMMO AG or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CA Immobilien Anlagen vs. S IMMO AG
Performance |
| Timeline |
| CA Immobilien Anlagen |
| S IMMO AG |
CA Immobilien and S IMMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CA Immobilien and S IMMO
The main advantage of trading using opposite CA Immobilien and S IMMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Immobilien position performs unexpectedly, S IMMO 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 S IMMO will offset losses from the drop in S IMMO's long position.| CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. S IMMO AG | CA Immobilien vs. Wienerberger AG | CA Immobilien vs. Vienna Insurance Group |
| S IMMO vs. AMAG Austria Metall | S IMMO vs. Vienna Insurance Group | S IMMO vs. Oberbank AG | S IMMO vs. Addiko Bank AG |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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