Correlation Between Gecina SA and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Gecina SA 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 Gecina SA and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gecina SA and alstria office REIT AG, you can compare the effects of market volatilities on Gecina SA 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 Gecina SA with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gecina SA and Alstria Office.
Diversification Opportunities for Gecina SA and Alstria Office
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gecina and Alstria is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA 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 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 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 Gecina SA i.e., Gecina SA and Alstria Office go up and down completely randomly.
Pair Corralation between Gecina SA and Alstria Office
Assuming the 90 days trading horizon Gecina SA is expected to under-perform the Alstria Office. But the stock apears to be less risky and, when comparing its historical volatility, Gecina SA is 2.24 times less risky than Alstria Office. The stock trades about -0.01 of its potential returns per unit of risk. The alstria office REIT AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 540.00 in alstria office REIT AG on October 31, 2024 and sell it today you would earn a total of 16.00 from holding alstria office REIT AG or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gecina SA vs. alstria office REIT AG
Performance |
| Timeline |
| Gecina SA |
| alstria office REIT |
Gecina SA and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gecina SA and Alstria Office
The main advantage of trading using opposite Gecina SA and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gecina SA 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.| Gecina SA vs. Apollo Medical Holdings | Gecina SA vs. Diamyd Medical AB | Gecina SA vs. MeVis Medical Solutions | Gecina SA vs. CVR Medical Corp |
| Alstria Office vs. Infrastrutture Wireless Italiane | Alstria Office vs. Harmony Gold Mining | Alstria Office vs. CENTURIA OFFICE REIT | Alstria Office vs. NURAN WIRELESS INC |
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 Stocks Directory module to find actively traded stocks across global markets.
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