Correlation Between Gecina SA and Inmobiliaria Colonial
Can any of the company-specific risk be diversified away by investing in both Gecina SA and Inmobiliaria Colonial 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 Inmobiliaria Colonial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gecina SA and Inmobiliaria Colonial SOCIMI, you can compare the effects of market volatilities on Gecina SA and Inmobiliaria Colonial 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 Inmobiliaria Colonial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gecina SA and Inmobiliaria Colonial.
Diversification Opportunities for Gecina SA and Inmobiliaria Colonial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gecina and Inmobiliaria is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA and Inmobiliaria Colonial SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmobiliaria Colonial 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 Inmobiliaria Colonial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmobiliaria Colonial has no effect on the direction of Gecina SA i.e., Gecina SA and Inmobiliaria Colonial go up and down completely randomly.
Pair Corralation between Gecina SA and Inmobiliaria Colonial
Assuming the 90 days trading horizon Gecina SA is expected to generate 1.07 times less return on investment than Inmobiliaria Colonial. But when comparing it to its historical volatility, Gecina SA is 1.26 times less risky than Inmobiliaria Colonial. It trades about 0.02 of its potential returns per unit of risk. Inmobiliaria Colonial SOCIMI is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 526.00 in Inmobiliaria Colonial SOCIMI on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Inmobiliaria Colonial SOCIMI or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gecina SA vs. Inmobiliaria Colonial SOCIMI
Performance |
| Timeline |
| Gecina SA |
| Inmobiliaria Colonial |
Gecina SA and Inmobiliaria Colonial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gecina SA and Inmobiliaria Colonial
The main advantage of trading using opposite Gecina SA and Inmobiliaria Colonial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gecina SA position performs unexpectedly, Inmobiliaria Colonial 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 Inmobiliaria Colonial will offset losses from the drop in Inmobiliaria Colonial's long position.| Gecina SA vs. Playa Hotels Resorts | Gecina SA vs. MIRAMAR HOTEL INV | Gecina SA vs. Rogers Communications | Gecina SA vs. Cogent Communications Holdings |
| Inmobiliaria Colonial vs. Hochschild Mining plc | Inmobiliaria Colonial vs. Boyd Gaming | Inmobiliaria Colonial vs. FUTURE GAMING GRP | Inmobiliaria Colonial vs. TSOGO SUN GAMING |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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