Correlation Between Gateway Real and Deutsche Wohnen
Specify exactly 2 symbols:
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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gateway and Deutsche is 0.42. 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 trading horizon Gateway Real Estate is expected to under-perform the Deutsche Wohnen. In addition to that, Gateway Real is 3.65 times more volatile than Deutsche Wohnen SE. It trades about -0.27 of its total potential returns per unit of risk. Deutsche Wohnen SE is currently generating about -0.11 per unit of volatility. If you would invest 2,435 in Deutsche Wohnen SE on September 24, 2024 and sell it today you would lose (115.00) from holding Deutsche Wohnen SE or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| 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. TIMES CHINA HLDGS | Gateway Real vs. LANDSEA HOMES P | Gateway Real vs. Greenland Hong Kong |
| Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. TIMES CHINA HLDGS | Deutsche Wohnen vs. LANDSEA HOMES P | Deutsche Wohnen vs. Greenland Hong Kong |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |