Correlation Between DATAGROUP and Alstria Office
Can any of the company-specific risk be diversified away by investing in both DATAGROUP and Alstria Office 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 DATAGROUP and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and alstria office REIT AG, you can compare the effects of market volatilities on DATAGROUP and Alstria Office 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 DATAGROUP with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and Alstria Office.
Diversification Opportunities for DATAGROUP and Alstria Office
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DATAGROUP and Alstria is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and DATAGROUP 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 DATAGROUP SE are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of DATAGROUP i.e., DATAGROUP and Alstria Office go up and down completely randomly.
Pair Corralation between DATAGROUP and Alstria Office
Assuming the 90 days trading horizon DATAGROUP SE is expected to under-perform the Alstria Office. But the stock apears to be less risky and, when comparing its historical volatility, DATAGROUP SE is 1.48 times less risky than Alstria Office. The stock trades about -0.03 of its potential returns per unit of risk. The alstria office REIT AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 541.00 in alstria office REIT AG on October 11, 2024 and sell it today you would lose (11.00) from holding alstria office REIT AG or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATAGROUP SE vs. alstria office REIT AG
Performance |
| Timeline |
| DATAGROUP SE |
| alstria office REIT |
DATAGROUP and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and Alstria Office
The main advantage of trading using opposite DATAGROUP and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| DATAGROUP vs. The Boston Beer | DATAGROUP vs. INTER CARS SA | DATAGROUP vs. MOVIE GAMES SA | DATAGROUP vs. Thai Beverage Public |
| Alstria Office vs. GEAR4MUSIC LS 10 | Alstria Office vs. Automatic Data Processing | Alstria Office vs. DATAGROUP SE | Alstria Office vs. MOVIE GAMES SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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