Correlation Between Inmobiliaria Colonial and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Inmobiliaria Colonial and Gecina 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 Inmobiliaria Colonial and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inmobiliaria Colonial SOCIMI and Gecina SA, you can compare the effects of market volatilities on Inmobiliaria Colonial and Gecina 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 Inmobiliaria Colonial with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inmobiliaria Colonial and Gecina SA.
Diversification Opportunities for Inmobiliaria Colonial and Gecina SA
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inmobiliaria and Gecina is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Inmobiliaria Colonial SOCIMI and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Inmobiliaria Colonial 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 Inmobiliaria Colonial SOCIMI are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Inmobiliaria Colonial i.e., Inmobiliaria Colonial and Gecina SA go up and down completely randomly.
Pair Corralation between Inmobiliaria Colonial and Gecina SA
Assuming the 90 days trading horizon Inmobiliaria Colonial SOCIMI is expected to generate 1.28 times more return on investment than Gecina SA. However, Inmobiliaria Colonial is 1.28 times more volatile than Gecina SA. It trades about 0.01 of its potential returns per unit of risk. Gecina SA is currently generating about 0.01 per unit of risk. If you would invest 503.00 in Inmobiliaria Colonial SOCIMI on October 24, 2024 and sell it today you would earn a total of 18.00 from holding Inmobiliaria Colonial SOCIMI or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.75% |
| Values | Daily Returns |
Inmobiliaria Colonial SOCIMI vs. Gecina SA
Performance |
| Timeline |
| Inmobiliaria Colonial |
| Gecina SA |
Inmobiliaria Colonial and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inmobiliaria Colonial and Gecina SA
The main advantage of trading using opposite Inmobiliaria Colonial and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inmobiliaria Colonial position performs unexpectedly, Gecina 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Inmobiliaria Colonial vs. DATATEC LTD 2 | Inmobiliaria Colonial vs. IERVOLINO ENTERTAINMENT | Inmobiliaria Colonial vs. ATRESMEDIA | Inmobiliaria Colonial vs. Nexstar Media Group |
| Gecina SA vs. GALENA MINING LTD | Gecina SA vs. NAKED WINES PLC | Gecina SA vs. Forsys Metals Corp | Gecina SA vs. MCEWEN MINING 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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