Correlation Between Gateway Real and Deutsche Wohnen
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By analyzing existing cross correlation between Gateway Real Estate and Deutsche Wohnen SE, you can compare the effects of market volatilities on Gateway Real and Deutsche Wohnen 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 Gateway Real with a short position of Deutsche Wohnen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Deutsche Wohnen.
Diversification Opportunities for Gateway Real and Deutsche Wohnen
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gateway and Deutsche is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate and Deutsche Wohnen SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Wohnen SE and Gateway Real 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 Gateway Real Estate are associated (or correlated) with Deutsche Wohnen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Wohnen SE has no effect on the direction of Gateway Real i.e., Gateway Real and Deutsche Wohnen go up and down completely randomly.
Pair Corralation between Gateway Real and Deutsche Wohnen
Assuming the 90 days horizon Gateway Real Estate is expected to generate 22.17 times more return on investment than Deutsche Wohnen. However, Gateway Real is 22.17 times more volatile than Deutsche Wohnen SE. It trades about 0.17 of its potential returns per unit of risk. Deutsche Wohnen SE is currently generating about 0.12 per unit of risk. If you would invest 44.00 in Gateway Real Estate on November 7, 2024 and sell it today you would earn a total of 36.00 from holding Gateway Real Estate or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Real Estate vs. Deutsche Wohnen SE
Performance |
| Timeline |
| Gateway Real Estate |
| Deutsche Wohnen SE |
Gateway Real and Deutsche Wohnen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Real and Deutsche Wohnen
The main advantage of trading using opposite Gateway Real and Deutsche Wohnen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real position performs unexpectedly, Deutsche Wohnen 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 Deutsche Wohnen will offset losses from the drop in Deutsche Wohnen's long position.| Gateway Real vs. Deutsche Wohnen SE | Gateway Real vs. Gateway Real Estate | Gateway Real vs. Gateway Real Estate | Gateway Real vs. TIMES CHINA HLDGS |
| Deutsche Wohnen vs. Daito Trust Construction | Deutsche Wohnen vs. Hitachi Construction Machinery | Deutsche Wohnen vs. COPLAND ROAD CAPITAL | Deutsche Wohnen vs. NAGOYA RAILROAD |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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