Correlation Between Gateway Real and Exasol AG

Can any of the company-specific risk be diversified away by investing in both Gateway Real and Exasol AG 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 Gateway Real and Exasol AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gateway Real Estate and Exasol AG, you can compare the effects of market volatilities on Gateway Real and Exasol AG 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 Gateway Real with a short position of Exasol AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Exasol AG.

Diversification Opportunities for Gateway Real and Exasol AG

-0.74

Correlation Coefficient

Gateway Real  Exasol AG

Pay attention - limited upside

The 3 months correlation between Gateway and Exasol is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate and Exasol AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exasol AG and Gateway Real 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 Gateway Real Estate are associated (or correlated) with Exasol AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exasol AG has no effect on the direction of Gateway Real i.e., Gateway Real and Exasol AG go up and down completely randomly.

Pair Corralation between Gateway Real and Exasol AG

Assuming the 90 days trading horizon Gateway Real Estate is expected to generate 2.92 times more return on investment than Exasol AG. However, Gateway Real is 2.92 times more volatile than Exasol AG. It trades about 0.14 of its potential returns per unit of risk. Exasol AG is currently generating about -0.06 per unit of risk. If you would invest  56.00  in Gateway Real Estate on April 23, 2025 and sell it today you would earn a total of  33.00  from holding Gateway Real Estate or generate 58.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Gateway Real Estate  vs.  Exasol AG

Gateway Real Estate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gateway Real Estate are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Gateway Real unveiled solid returns over the last few months and may actually be approaching a breakup point.

Exasol AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exasol AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Gateway Real and Exasol AG

The main advantage of trading using opposite Gateway Real and Exasol AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real position performs unexpectedly, Exasol AG 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 Exasol AG will offset losses from the drop in Exasol AG's long position.

The idea behind Gateway Real Estate and Exasol AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.