Correlation Between Gecina SA and KBS Real
Can any of the company-specific risk be diversified away by investing in both Gecina SA and KBS Real 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 Gecina SA and KBS Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gecina SA and KBS Real Estate, you can compare the effects of market volatilities on Gecina SA and KBS 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 Gecina SA with a short position of KBS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gecina SA and KBS Real.
Diversification Opportunities for Gecina SA and KBS Real
Poor diversification
The 3 months correlation between Gecina and KBS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA and KBS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBS Real Estate and Gecina SA 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 Gecina SA are associated (or correlated) with KBS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBS Real Estate has no effect on the direction of Gecina SA i.e., Gecina SA and KBS Real go up and down completely randomly.
Pair Corralation between Gecina SA and KBS Real
Assuming the 90 days horizon Gecina SA is expected to generate 1.02 times more return on investment than KBS Real. However, Gecina SA is 1.02 times more volatile than KBS Real Estate. It trades about 0.04 of its potential returns per unit of risk. KBS Real Estate is currently generating about -0.1 per unit of risk. If you would invest 6,810 in Gecina SA on September 3, 2024 and sell it today you would earn a total of 2,890 from holding Gecina SA or generate 42.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 69.89% |
| Values | Daily Returns |
Gecina SA vs. KBS Real Estate
Performance |
| Timeline |
| Gecina SA |
| KBS Real Estate |
Gecina SA and KBS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gecina SA and KBS Real
The main advantage of trading using opposite Gecina SA and KBS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gecina SA position performs unexpectedly, KBS 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 KBS Real will offset losses from the drop in KBS Real's long position.| Gecina SA vs. Highwoods Properties | Gecina SA vs. Piedmont Office Realty | Gecina SA vs. Douglas Emmett | Gecina SA vs. Kilroy Realty Corp |
| KBS Real vs. Cousins Properties Incorporated | KBS Real vs. Highwoods Properties | KBS Real vs. Douglas Emmett | KBS Real vs. Equity Commonwealth |
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.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |