Correlation Between S IMMO and AT S
Can any of the company-specific risk be diversified away by investing in both S IMMO and AT S 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 S IMMO and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S IMMO AG and AT S Austria, you can compare the effects of market volatilities on S IMMO and AT S 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 S IMMO with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of S IMMO and AT S.
Diversification Opportunities for S IMMO and AT S
Very good diversification
The 3 months correlation between SPI and ATS is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding S IMMO AG and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and S IMMO 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 S IMMO AG are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of S IMMO i.e., S IMMO and AT S go up and down completely randomly.
Pair Corralation between S IMMO and AT S
Assuming the 90 days trading horizon S IMMO AG is expected to generate 0.16 times more return on investment than AT S. However, S IMMO AG is 6.11 times less risky than AT S. It trades about 0.08 of its potential returns per unit of risk. AT S Austria is currently generating about -0.49 per unit of risk. If you would invest 2,200 in S IMMO AG on August 23, 2024 and sell it today you would earn a total of 20.00 from holding S IMMO AG or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
S IMMO AG vs. AT S Austria
Performance |
| Timeline |
| S IMMO AG |
| AT S Austria |
S IMMO and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S IMMO and AT S
The main advantage of trading using opposite S IMMO and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S IMMO position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| S IMMO vs. CA Immobilien Anlagen | S IMMO vs. UBM Development AG | S IMMO vs. AT S Austria | S IMMO vs. BAWAG Group AG |
| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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