Correlation Between Meta Financial and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Meta Financial 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 Meta Financial and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Financial Group and alstria office REIT AG, you can compare the effects of market volatilities on Meta Financial 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 Meta Financial with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Financial and Alstria Office.
Diversification Opportunities for Meta Financial and Alstria Office
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meta and Alstria is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Meta Financial Group 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 Meta Financial 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 Meta Financial Group 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 Meta Financial i.e., Meta Financial and Alstria Office go up and down completely randomly.
Pair Corralation between Meta Financial and Alstria Office
Assuming the 90 days horizon Meta Financial Group is expected to generate 1.88 times more return on investment than Alstria Office. However, Meta Financial is 1.88 times more volatile than alstria office REIT AG. It trades about 0.2 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.24 per unit of risk. If you would invest 7,150 in Meta Financial Group on November 5, 2024 and sell it today you would earn a total of 450.00 from holding Meta Financial Group or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meta Financial Group vs. alstria office REIT AG
Performance |
| Timeline |
| Meta Financial Group |
| alstria office REIT |
Meta Financial and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Financial and Alstria Office
The main advantage of trading using opposite Meta Financial and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Financial 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.| Meta Financial vs. Alliance Data Systems | Meta Financial vs. Automatic Data Processing | Meta Financial vs. Teradata Corp | Meta Financial vs. The Yokohama Rubber |
| Alstria Office vs. ANTA SPORTS PRODUCT | Alstria Office vs. PLANT VEDA FOODS | Alstria Office vs. PLAYMATES TOYS | Alstria Office vs. Gaming and Leisure |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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