Correlation Between Realstone Swiss and Immofonds
Can any of the company-specific risk be diversified away by investing in both Realstone Swiss and Immofonds 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 Realstone Swiss and Immofonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realstone Swiss Property and Immofonds, you can compare the effects of market volatilities on Realstone Swiss and Immofonds 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 Realstone Swiss with a short position of Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realstone Swiss and Immofonds.
Diversification Opportunities for Realstone Swiss and Immofonds
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Realstone and Immofonds is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Realstone Swiss Property and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and Realstone Swiss 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 Realstone Swiss Property are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Realstone Swiss i.e., Realstone Swiss and Immofonds go up and down completely randomly.
Pair Corralation between Realstone Swiss and Immofonds
Assuming the 90 days trading horizon Realstone Swiss Property is expected to generate 1.27 times more return on investment than Immofonds. However, Realstone Swiss is 1.27 times more volatile than Immofonds. It trades about 0.26 of its potential returns per unit of risk. Immofonds is currently generating about 0.24 per unit of risk. If you would invest 13,000 in Realstone Swiss Property on September 19, 2024 and sell it today you would earn a total of 1,450 from holding Realstone Swiss Property or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Realstone Swiss Property vs. Immofonds
Performance |
| Timeline |
| Realstone Swiss Property |
| Immofonds |
Realstone Swiss and Immofonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realstone Swiss and Immofonds
The main advantage of trading using opposite Realstone Swiss and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realstone Swiss position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.| Realstone Swiss vs. SPDR Dow Jones | Realstone Swiss vs. Baloise Holding AG | Realstone Swiss vs. Banque Cantonale du | Realstone Swiss vs. 21Shares Polkadot ETP |
| Immofonds vs. CS Real Estate | Immofonds vs. CS Real Estate | Immofonds vs. Swissinvest Real Estate | Immofonds vs. Realstone Swiss Property |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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