Correlation Between Greenland Hong and Deutsche Wohnen
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By analyzing existing cross correlation between Greenland Hong Kong and Deutsche Wohnen SE, you can compare the effects of market volatilities on Greenland Hong 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 Greenland Hong with a short position of Deutsche Wohnen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Hong and Deutsche Wohnen.
Diversification Opportunities for Greenland Hong and Deutsche Wohnen
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greenland and Deutsche is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Hong Kong 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 Greenland Hong 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 Greenland Hong Kong 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 Greenland Hong i.e., Greenland Hong and Deutsche Wohnen go up and down completely randomly.
Pair Corralation between Greenland Hong and Deutsche Wohnen
Assuming the 90 days trading horizon Greenland Hong Kong is expected to generate 4.38 times more return on investment than Deutsche Wohnen. However, Greenland Hong is 4.38 times more volatile than Deutsche Wohnen SE. It trades about 0.11 of its potential returns per unit of risk. Deutsche Wohnen SE is currently generating about 0.22 per unit of risk. If you would invest 2.70 in Greenland Hong Kong on September 4, 2024 and sell it today you would earn a total of 0.35 from holding Greenland Hong Kong or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenland Hong Kong vs. Deutsche Wohnen SE
Performance |
| Timeline |
| Greenland Hong Kong |
| Deutsche Wohnen SE |
Greenland Hong and Deutsche Wohnen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Hong and Deutsche Wohnen
The main advantage of trading using opposite Greenland Hong and Deutsche Wohnen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Hong 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.| Greenland Hong vs. PT Indofood Sukses | Greenland Hong vs. Lery Seafood Group | Greenland Hong vs. Dairy Farm International | Greenland Hong vs. AUSTEVOLL SEAFOOD |
| Deutsche Wohnen vs. GUARDANT HEALTH CL | Deutsche Wohnen vs. Ramsay Health Care | Deutsche Wohnen vs. Texas Roadhouse | Deutsche Wohnen vs. KAUFMAN ET BROAD |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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