Correlation Between WESANA HEALTH and Alstria Office
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and alstria office REIT AG, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and Alstria Office.
Diversification Opportunities for WESANA HEALTH and Alstria Office
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WESANA and Alstria is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD 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 WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and Alstria Office go up and down completely randomly.
Pair Corralation between WESANA HEALTH and Alstria Office
If you would invest 0.15 in WESANA HEALTH HOLD on October 12, 2024 and sell it today you would earn a total of 0.00 from holding WESANA HEALTH HOLD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. alstria office REIT AG
Performance |
| Timeline |
| WESANA HEALTH HOLD |
| alstria office REIT |
WESANA HEALTH and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESANA HEALTH and Alstria Office
The main advantage of trading using opposite WESANA HEALTH and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.| WESANA HEALTH vs. Calibre Mining Corp | WESANA HEALTH vs. MAGNUM MINING EXP | WESANA HEALTH vs. Harmony Gold Mining | WESANA HEALTH vs. Erste Group Bank |
| Alstria Office vs. Chengdu PUTIAN Telecommunications | Alstria Office vs. SK TELECOM TDADR | Alstria Office vs. Siemens Healthineers AG | Alstria Office vs. WESANA HEALTH HOLD |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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