Correlation Between BANNER and Alstria Office
Can any of the company-specific risk be diversified away by investing in both BANNER 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 BANNER and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANNER and alstria office REIT AG, you can compare the effects of market volatilities on BANNER 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 BANNER with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANNER and Alstria Office.
Diversification Opportunities for BANNER and Alstria Office
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BANNER and Alstria is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding BANNER 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 BANNER 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 BANNER 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 BANNER i.e., BANNER and Alstria Office go up and down completely randomly.
Pair Corralation between BANNER and Alstria Office
Assuming the 90 days trading horizon BANNER is expected to generate 0.35 times more return on investment than Alstria Office. However, BANNER is 2.88 times less risky than Alstria Office. It trades about -0.04 of its potential returns per unit of risk. alstria office REIT AG is currently generating about -0.1 per unit of risk. If you would invest 6,600 in BANNER on October 9, 2024 and sell it today you would lose (200.00) from holding BANNER or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
BANNER vs. alstria office REIT AG
Performance |
| Timeline |
| BANNER |
| alstria office REIT |
BANNER and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANNER and Alstria Office
The main advantage of trading using opposite BANNER and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANNER 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.| BANNER vs. Gruppo Mutuionline SpA | BANNER vs. Synovus Financial Corp | BANNER vs. RYU Apparel | BANNER vs. SCANSOURCE |
| Alstria Office vs. American Public Education | Alstria Office vs. Adtalem Global Education | Alstria Office vs. International Consolidated Airlines | Alstria Office vs. IDP EDUCATION LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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