Correlation Between Immofinanz and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both Immofinanz and OPEN HOUSE 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 Immofinanz and OPEN HOUSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immofinanz AG and OPEN HOUSE GROUP, you can compare the effects of market volatilities on Immofinanz and OPEN HOUSE 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 Immofinanz with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immofinanz and OPEN HOUSE.
Diversification Opportunities for Immofinanz and OPEN HOUSE
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immofinanz and OPEN is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Immofinanz AG and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and Immofinanz 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 Immofinanz AG are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of Immofinanz i.e., Immofinanz and OPEN HOUSE go up and down completely randomly.
Pair Corralation between Immofinanz and OPEN HOUSE
Assuming the 90 days trading horizon Immofinanz AG is expected to under-perform the OPEN HOUSE. But the stock apears to be less risky and, when comparing its historical volatility, Immofinanz AG is 1.03 times less risky than OPEN HOUSE. The stock trades about -0.02 of its potential returns per unit of risk. The OPEN HOUSE GROUP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,040 in OPEN HOUSE GROUP on September 1, 2024 and sell it today you would earn a total of 440.00 from holding OPEN HOUSE GROUP or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immofinanz AG vs. OPEN HOUSE GROUP
Performance |
| Timeline |
| Immofinanz AG |
| OPEN HOUSE GROUP |
Immofinanz and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immofinanz and OPEN HOUSE
The main advantage of trading using opposite Immofinanz and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immofinanz position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. Superior Plus Corp | Immofinanz vs. NMI Holdings | Immofinanz vs. Origin Agritech |
| OPEN HOUSE vs. Austevoll Seafood ASA | OPEN HOUSE vs. United Natural Foods | OPEN HOUSE vs. MCEWEN MINING INC | OPEN HOUSE vs. Perseus Mining Limited |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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