Correlation Between Federal Realty and Microlise Group
Can any of the company-specific risk be diversified away by investing in both Federal Realty and Microlise Group 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 Federal Realty and Microlise Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Realty Investment and Microlise Group PLC, you can compare the effects of market volatilities on Federal Realty and Microlise Group 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 Federal Realty with a short position of Microlise Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Realty and Microlise Group.
Diversification Opportunities for Federal Realty and Microlise Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federal and Microlise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federal Realty Investment and Microlise Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microlise Group PLC and Federal Realty 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 Federal Realty Investment are associated (or correlated) with Microlise Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microlise Group PLC has no effect on the direction of Federal Realty i.e., Federal Realty and Microlise Group go up and down completely randomly.
Pair Corralation between Federal Realty and Microlise Group
Assuming the 90 days trading horizon Federal Realty Investment is expected to generate 0.34 times more return on investment than Microlise Group. However, Federal Realty Investment is 2.98 times less risky than Microlise Group. It trades about 0.15 of its potential returns per unit of risk. Microlise Group PLC is currently generating about -0.06 per unit of risk. If you would invest 9,948 in Federal Realty Investment on September 3, 2024 and sell it today you would earn a total of 1,805 from holding Federal Realty Investment or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Federal Realty Investment vs. Microlise Group PLC
Performance |
| Timeline |
| Federal Realty Investment |
| Microlise Group PLC |
Federal Realty and Microlise Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Realty and Microlise Group
The main advantage of trading using opposite Federal Realty and Microlise Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Realty position performs unexpectedly, Microlise Group 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 Microlise Group will offset losses from the drop in Microlise Group's long position.| Federal Realty vs. Amedeo Air Four | Federal Realty vs. Sealed Air Corp | Federal Realty vs. European Metals Holdings | Federal Realty vs. Pentair PLC |
| Microlise Group vs. Odyssean Investment Trust | Microlise Group vs. Elmos Semiconductor SE | Microlise Group vs. Herald Investment Trust | Microlise Group vs. Federal Realty Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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