Correlation Between Digital Realty and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Digital Realty and Gecina SA 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 Digital Realty and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Realty Trust and Gecina SA, you can compare the effects of market volatilities on Digital Realty and Gecina SA 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 Digital Realty with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Realty and Gecina SA.
Diversification Opportunities for Digital Realty and Gecina SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and Gecina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digital Realty Trust and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Digital Realty 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 Digital Realty Trust are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Digital Realty i.e., Digital Realty and Gecina SA go up and down completely randomly.
Pair Corralation between Digital Realty and Gecina SA
If you would invest (100.00) in Digital Realty Trust on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Digital Realty Trust or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Digital Realty Trust vs. Gecina SA
Performance |
| Timeline |
| Digital Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gecina SA |
Digital Realty and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Realty and Gecina SA
The main advantage of trading using opposite Digital Realty and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Realty position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Digital Realty vs. FLOW TRADERS LTD | Digital Realty vs. Vastned Retail NV | Digital Realty vs. AVITA Medical | Digital Realty vs. MARKET VECTR RETAIL |
| Gecina SA vs. IMAGIN MEDICAL INC | Gecina SA vs. Merit Medical Systems | Gecina SA vs. MACOM Technology Solutions | Gecina SA vs. SCOTT 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |