Correlation Between Private Equity and HIAG Immobilien
Can any of the company-specific risk be diversified away by investing in both Private Equity and HIAG Immobilien 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 Private Equity and HIAG Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Private Equity Holding and HIAG Immobilien Holding, you can compare the effects of market volatilities on Private Equity and HIAG Immobilien 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 Private Equity with a short position of HIAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Private Equity and HIAG Immobilien.
Diversification Opportunities for Private Equity and HIAG Immobilien
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Private and HIAG is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Private Equity Holding and HIAG Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIAG Immobilien Holding and Private Equity 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 Private Equity Holding are associated (or correlated) with HIAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIAG Immobilien Holding has no effect on the direction of Private Equity i.e., Private Equity and HIAG Immobilien go up and down completely randomly.
Pair Corralation between Private Equity and HIAG Immobilien
Assuming the 90 days trading horizon Private Equity Holding is expected to generate 1.64 times more return on investment than HIAG Immobilien. However, Private Equity is 1.64 times more volatile than HIAG Immobilien Holding. It trades about 0.01 of its potential returns per unit of risk. HIAG Immobilien Holding is currently generating about 0.01 per unit of risk. If you would invest 7,123 in Private Equity Holding on September 3, 2024 and sell it today you would lose (163.00) from holding Private Equity Holding or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.66% |
| Values | Daily Returns |
Private Equity Holding vs. HIAG Immobilien Holding
Performance |
| Timeline |
| Private Equity Holding |
| HIAG Immobilien Holding |
Private Equity and HIAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Private Equity and HIAG Immobilien
The main advantage of trading using opposite Private Equity and HIAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Private Equity position performs unexpectedly, HIAG Immobilien 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 HIAG Immobilien will offset losses from the drop in HIAG Immobilien's long position.| Private Equity vs. Orior AG | Private Equity vs. HIAG Immobilien Holding | Private Equity vs. Bellevue Group AG | Private Equity vs. Feintool International Holding |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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