Correlation Between W P and DWS
Can any of the company-specific risk be diversified away by investing in both W P and DWS 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 W P and DWS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between W P Carey and DWS, you can compare the effects of market volatilities on W P and DWS 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 W P with a short position of DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of W P and DWS.
Diversification Opportunities for W P and DWS
Pay attention - limited upside
The 3 months correlation between WPC and DWS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding W P Carey and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS and W P 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 W P Carey are associated (or correlated) with DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of W P i.e., W P and DWS go up and down completely randomly.
Pair Corralation between W P and DWS
If you would invest 5,472 in W P Carey on January 24, 2024 and sell it today you would earn a total of 159.00 from holding W P Carey or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
W P Carey vs. DWS
Performance |
| Timeline |
| W P Carey |
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
W P and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with W P and DWS
The main advantage of trading using opposite W P and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if W P position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.| W P vs. STAG Industrial | W P vs. National Retail Properties | W P vs. Medical Properties Trust | W P vs. Omega Healthcare Investors |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |