Correlation Between Deutsche Wohnen and Gateway Real
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By analyzing existing cross correlation between Deutsche Wohnen SE and Gateway Real Estate, you can compare the effects of market volatilities on Deutsche Wohnen and Gateway Real 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 Deutsche Wohnen with a short position of Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Wohnen and Gateway Real.
Diversification Opportunities for Deutsche Wohnen and Gateway Real
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Gateway is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Wohnen SE and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate and Deutsche Wohnen 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 Deutsche Wohnen SE are associated (or correlated) with Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of Deutsche Wohnen i.e., Deutsche Wohnen and Gateway Real go up and down completely randomly.
Pair Corralation between Deutsche Wohnen and Gateway Real
Assuming the 90 days trading horizon Deutsche Wohnen is expected to generate 18.94 times less return on investment than Gateway Real. But when comparing it to its historical volatility, Deutsche Wohnen SE is 21.28 times less risky than Gateway Real. It trades about 0.2 of its potential returns per unit of risk. Gateway Real Estate is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Gateway Real Estate on November 8, 2024 and sell it today you would earn a total of 35.00 from holding Gateway Real Estate or generate 79.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Deutsche Wohnen SE vs. Gateway Real Estate
Performance |
| Timeline |
| Deutsche Wohnen SE |
| Gateway Real Estate |
Deutsche Wohnen and Gateway Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Wohnen and Gateway Real
The main advantage of trading using opposite Deutsche Wohnen and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Wohnen position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.| Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. TIMES CHINA HLDGS |
| Gateway Real vs. Addtech AB | Gateway Real vs. Advanced Medical Solutions | Gateway Real vs. MeVis Medical Solutions | Gateway Real vs. Sunny Optical Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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