Correlation Between PSP Swiss and Allreal Holding
Can any of the company-specific risk be diversified away by investing in both PSP Swiss and Allreal Holding 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 PSP Swiss and Allreal Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSP Swiss Property and Allreal Holding, you can compare the effects of market volatilities on PSP Swiss and Allreal Holding 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 PSP Swiss with a short position of Allreal Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSP Swiss and Allreal Holding.
Diversification Opportunities for PSP Swiss and Allreal Holding
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PSP and Allreal is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PSP Swiss Property and Allreal Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allreal Holding and PSP 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 PSP Swiss Property are associated (or correlated) with Allreal Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allreal Holding has no effect on the direction of PSP Swiss i.e., PSP Swiss and Allreal Holding go up and down completely randomly.
Pair Corralation between PSP Swiss and Allreal Holding
Assuming the 90 days trading horizon PSP Swiss Property is expected to under-perform the Allreal Holding. In addition to that, PSP Swiss is 1.18 times more volatile than Allreal Holding. It trades about -0.12 of its total potential returns per unit of risk. Allreal Holding is currently generating about 0.03 per unit of volatility. If you would invest 18,200 in Allreal Holding on May 2, 2025 and sell it today you would earn a total of 220.00 from holding Allreal Holding or generate 1.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PSP Swiss Property vs. Allreal Holding
Performance |
Timeline |
PSP Swiss Property |
Allreal Holding |
PSP Swiss and Allreal Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PSP Swiss and Allreal Holding
The main advantage of trading using opposite PSP Swiss and Allreal Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSP Swiss position performs unexpectedly, Allreal Holding 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 Allreal Holding will offset losses from the drop in Allreal Holding's long position.PSP Swiss vs. Swiss Prime Site | PSP Swiss vs. Allreal Holding | PSP Swiss vs. Mobimo Hldg | PSP Swiss vs. Helvetia Holding AG |
Allreal Holding vs. PSP Swiss Property | Allreal Holding vs. Swiss Prime Site | Allreal Holding vs. Mobimo Hldg | Allreal Holding vs. Helvetia Holding AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |