Correlation Between Stadlauer Malzfabrik and CA Immobilien
Can any of the company-specific risk be diversified away by investing in both Stadlauer Malzfabrik and CA 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 Stadlauer Malzfabrik and CA Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stadlauer Malzfabrik Aktiengesellschaft and CA Immobilien Anlagen, you can compare the effects of market volatilities on Stadlauer Malzfabrik and CA 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 Stadlauer Malzfabrik with a short position of CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stadlauer Malzfabrik and CA Immobilien.
Diversification Opportunities for Stadlauer Malzfabrik and CA Immobilien
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stadlauer and CAI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Stadlauer Malzfabrik Aktienges and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen and Stadlauer Malzfabrik 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 Stadlauer Malzfabrik Aktiengesellschaft are associated (or correlated) with CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Stadlauer Malzfabrik i.e., Stadlauer Malzfabrik and CA Immobilien go up and down completely randomly.
Pair Corralation between Stadlauer Malzfabrik and CA Immobilien
Assuming the 90 days trading horizon Stadlauer Malzfabrik Aktiengesellschaft is expected to under-perform the CA Immobilien. But the stock apears to be less risky and, when comparing its historical volatility, Stadlauer Malzfabrik Aktiengesellschaft is 1.69 times less risky than CA Immobilien. The stock trades about -0.21 of its potential returns per unit of risk. The CA Immobilien Anlagen is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,376 in CA Immobilien Anlagen on August 30, 2024 and sell it today you would lose (58.00) from holding CA Immobilien Anlagen or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stadlauer Malzfabrik Aktienges vs. CA Immobilien Anlagen
Performance |
| Timeline |
| Stadlauer Malzfabrik |
| CA Immobilien Anlagen |
Stadlauer Malzfabrik and CA Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stadlauer Malzfabrik and CA Immobilien
The main advantage of trading using opposite Stadlauer Malzfabrik and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadlauer Malzfabrik position performs unexpectedly, CA 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.| Stadlauer Malzfabrik vs. CA Immobilien Anlagen | Stadlauer Malzfabrik vs. AGRANA Beteiligungs Aktiengesellschaft | Stadlauer Malzfabrik vs. Mayr Melnhof Karton AG | Stadlauer Malzfabrik vs. Kapsch Traffic |
| CA Immobilien vs. RATH Aktiengesellschaft | CA Immobilien vs. AT S Austria | CA Immobilien vs. BAWAG Group AG | CA Immobilien vs. Semperit Aktiengesellschaft Holding |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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