Correlation Between ACRES Commercial and Extendicare
Can any of the company-specific risk be diversified away by investing in both ACRES Commercial and Extendicare 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 ACRES Commercial and Extendicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACRES Commercial Realty and Extendicare, you can compare the effects of market volatilities on ACRES Commercial and Extendicare 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 ACRES Commercial with a short position of Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACRES Commercial and Extendicare.
Diversification Opportunities for ACRES Commercial and Extendicare
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACRES and Extendicare is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and ACRES Commercial 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 ACRES Commercial Realty are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of ACRES Commercial i.e., ACRES Commercial and Extendicare go up and down completely randomly.
Pair Corralation between ACRES Commercial and Extendicare
If you would invest 1,714 in ACRES Commercial Realty on August 27, 2024 and sell it today you would earn a total of 794.00 from holding ACRES Commercial Realty or generate 46.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.25% |
| Values | Daily Returns |
ACRES Commercial Realty vs. Extendicare
Performance |
| Timeline |
| ACRES Commercial Realty |
| Extendicare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ACRES Commercial and Extendicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACRES Commercial and Extendicare
The main advantage of trading using opposite ACRES Commercial and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACRES Commercial position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.| ACRES Commercial vs. Annaly Capital Management | ACRES Commercial vs. AGNC Investment Corp | ACRES Commercial vs. Invesco Mortgage Capital | ACRES Commercial vs. Invesco Mortgage Capital |
| Extendicare vs. Ramsay Health Care | Extendicare vs. Jack Nathan Medical | Extendicare vs. Nova Leap Health | Extendicare vs. Fresenius SE Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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