Correlation Between GEAR4MUSIC (HLDGS) and Alstria Office
Can any of the company-specific risk be diversified away by investing in both GEAR4MUSIC (HLDGS) 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 GEAR4MUSIC (HLDGS) and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEAR4MUSIC LS 10 and alstria office REIT AG, you can compare the effects of market volatilities on GEAR4MUSIC (HLDGS) 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 GEAR4MUSIC (HLDGS) with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEAR4MUSIC (HLDGS) and Alstria Office.
Diversification Opportunities for GEAR4MUSIC (HLDGS) and Alstria Office
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEAR4MUSIC and Alstria is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GEAR4MUSIC LS 10 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 GEAR4MUSIC (HLDGS) 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 GEAR4MUSIC LS 10 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 GEAR4MUSIC (HLDGS) i.e., GEAR4MUSIC (HLDGS) and Alstria Office go up and down completely randomly.
Pair Corralation between GEAR4MUSIC (HLDGS) and Alstria Office
Assuming the 90 days horizon GEAR4MUSIC LS 10 is expected to generate 0.98 times more return on investment than Alstria Office. However, GEAR4MUSIC LS 10 is 1.02 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 0.01 per unit of risk. If you would invest 129.00 in GEAR4MUSIC LS 10 on October 11, 2024 and sell it today you would earn a total of 61.00 from holding GEAR4MUSIC LS 10 or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEAR4MUSIC LS 10 vs. alstria office REIT AG
Performance |
| Timeline |
| GEAR4MUSIC (HLDGS) |
| alstria office REIT |
GEAR4MUSIC (HLDGS) and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEAR4MUSIC (HLDGS) and Alstria Office
The main advantage of trading using opposite GEAR4MUSIC (HLDGS) and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEAR4MUSIC (HLDGS) 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.| GEAR4MUSIC (HLDGS) vs. Apollo Investment Corp | GEAR4MUSIC (HLDGS) vs. AOYAMA TRADING | GEAR4MUSIC (HLDGS) vs. BioNTech SE | GEAR4MUSIC (HLDGS) vs. REINET INVESTMENTS SCA |
| Alstria Office vs. GEAR4MUSIC LS 10 | Alstria Office vs. Automatic Data Processing | Alstria Office vs. DATAGROUP SE | Alstria Office vs. MOVIE GAMES SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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