Correlation Between Supermarket Income and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Supermarket Income and Alstria Office 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 Supermarket Income and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermarket Income REIT and alstria office REIT AG, you can compare the effects of market volatilities on Supermarket Income and Alstria Office 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 Supermarket Income with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Alstria Office.
Diversification Opportunities for Supermarket Income and Alstria Office
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supermarket and Alstria is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and Supermarket Income 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 Supermarket Income REIT are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Supermarket Income i.e., Supermarket Income and Alstria Office go up and down completely randomly.
Pair Corralation between Supermarket Income and Alstria Office
Assuming the 90 days trading horizon Supermarket Income REIT is expected to under-perform the Alstria Office. But the stock apears to be less risky and, when comparing its historical volatility, Supermarket Income REIT is 3.33 times less risky than Alstria Office. The stock trades about -0.05 of its potential returns per unit of risk. The alstria office REIT AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 357.00 in alstria office REIT AG on September 20, 2024 and sell it today you would earn a total of 412.00 from holding alstria office REIT AG or generate 115.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supermarket Income REIT vs. alstria office REIT AG
Performance |
| Timeline |
| Supermarket Income REIT |
| alstria office REIT |
Supermarket Income and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Alstria Office
The main advantage of trading using opposite Supermarket Income and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Supermarket Income vs. Hochschild Mining plc | Supermarket Income vs. Raytheon Technologies Corp | Supermarket Income vs. Panther Metals PLC | Supermarket Income vs. Ashtead Technology Holdings |
| Alstria Office vs. Batm Advanced Communications | Alstria Office vs. MTI Wireless Edge | Alstria Office vs. Infrastrutture Wireless Italiane | Alstria Office vs. Axway Software SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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