Correlation Between OPEN HOUSE and Immofinanz
Can any of the company-specific risk be diversified away by investing in both OPEN HOUSE and Immofinanz 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 OPEN HOUSE and Immofinanz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPEN HOUSE GROUP and Immofinanz AG, you can compare the effects of market volatilities on OPEN HOUSE and Immofinanz 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 OPEN HOUSE with a short position of Immofinanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPEN HOUSE and Immofinanz.
Diversification Opportunities for OPEN HOUSE and Immofinanz
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OPEN and Immofinanz is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OPEN HOUSE GROUP and Immofinanz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofinanz AG and OPEN HOUSE 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 OPEN HOUSE GROUP are associated (or correlated) with Immofinanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofinanz AG has no effect on the direction of OPEN HOUSE i.e., OPEN HOUSE and Immofinanz go up and down completely randomly.
Pair Corralation between OPEN HOUSE and Immofinanz
Assuming the 90 days horizon OPEN HOUSE is expected to generate 1.94 times less return on investment than Immofinanz. In addition to that, OPEN HOUSE is 1.23 times more volatile than Immofinanz AG. It trades about 0.06 of its total potential returns per unit of risk. Immofinanz AG is currently generating about 0.15 per unit of volatility. If you would invest 1,500 in Immofinanz AG on September 1, 2024 and sell it today you would earn a total of 78.00 from holding Immofinanz AG or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPEN HOUSE GROUP vs. Immofinanz AG
Performance |
| Timeline |
| OPEN HOUSE GROUP |
| Immofinanz AG |
OPEN HOUSE and Immofinanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPEN HOUSE and Immofinanz
The main advantage of trading using opposite OPEN HOUSE and Immofinanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPEN HOUSE position performs unexpectedly, Immofinanz 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 Immofinanz will offset losses from the drop in Immofinanz's long position.| OPEN HOUSE vs. Austevoll Seafood ASA | OPEN HOUSE vs. United Natural Foods | OPEN HOUSE vs. MCEWEN MINING INC | OPEN HOUSE vs. Perseus Mining Limited |
| Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. Superior Plus Corp | Immofinanz vs. NMI Holdings | Immofinanz vs. Origin Agritech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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