Correlation Between GSW Immobilien and KALRAY SA
Can any of the company-specific risk be diversified away by investing in both GSW Immobilien and KALRAY SA 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 GSW Immobilien and KALRAY SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSW Immobilien AG and KALRAY SA EO, you can compare the effects of market volatilities on GSW Immobilien and KALRAY SA 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 GSW Immobilien with a short position of KALRAY SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSW Immobilien and KALRAY SA.
Diversification Opportunities for GSW Immobilien and KALRAY SA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GSW and KALRAY is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding GSW Immobilien AG and KALRAY SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KALRAY SA EO and GSW Immobilien 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 GSW Immobilien AG are associated (or correlated) with KALRAY SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KALRAY SA EO has no effect on the direction of GSW Immobilien i.e., GSW Immobilien and KALRAY SA go up and down completely randomly.
Pair Corralation between GSW Immobilien and KALRAY SA
Assuming the 90 days trading horizon GSW Immobilien AG is expected to generate 1.26 times more return on investment than KALRAY SA. However, GSW Immobilien is 1.26 times more volatile than KALRAY SA EO. It trades about -0.08 of its potential returns per unit of risk. KALRAY SA EO is currently generating about -0.24 per unit of risk. If you would invest 8,000 in GSW Immobilien AG on October 24, 2024 and sell it today you would lose (1,200) from holding GSW Immobilien AG or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSW Immobilien AG vs. KALRAY SA EO
Performance |
| Timeline |
| GSW Immobilien AG |
| KALRAY SA EO |
GSW Immobilien and KALRAY SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSW Immobilien and KALRAY SA
The main advantage of trading using opposite GSW Immobilien and KALRAY SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSW Immobilien position performs unexpectedly, KALRAY SA 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 KALRAY SA will offset losses from the drop in KALRAY SA's long position.| GSW Immobilien vs. ATRESMEDIA | GSW Immobilien vs. RCS MediaGroup SpA | GSW Immobilien vs. Gol Intelligent Airlines | GSW Immobilien vs. GungHo Online Entertainment |
| KALRAY SA vs. Kingdee International Software | KALRAY SA vs. Playtech plc | KALRAY SA vs. EEDUCATION ALBERT AB | KALRAY SA vs. SOFI TECHNOLOGIES |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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