Correlation Between Aedifica and Choice Properties

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Can any of the company-specific risk be diversified away by investing in both Aedifica and Choice Properties 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 Aedifica and Choice Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedifica SA and Choice Properties Real, you can compare the effects of market volatilities on Aedifica and Choice Properties 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 Aedifica with a short position of Choice Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedifica and Choice Properties.

Diversification Opportunities for Aedifica and Choice Properties

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aedifica and Choice is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aedifica SA and Choice Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Properties Real and Aedifica 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 Aedifica SA are associated (or correlated) with Choice Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Properties Real has no effect on the direction of Aedifica i.e., Aedifica and Choice Properties go up and down completely randomly.

Pair Corralation between Aedifica and Choice Properties

If you would invest  1,073  in Choice Properties Real on October 8, 2025 and sell it today you would earn a total of  4.00  from holding Choice Properties Real or generate 0.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Aedifica SA  vs.  Choice Properties Real

 Performance 
       Timeline  
Aedifica SA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Aedifica SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aedifica is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Choice Properties Real 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Choice Properties Real are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Choice Properties is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Aedifica and Choice Properties Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aedifica and Choice Properties

The main advantage of trading using opposite Aedifica and Choice Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedifica position performs unexpectedly, Choice Properties 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 Choice Properties will offset losses from the drop in Choice Properties' long position.
The idea behind Aedifica SA and Choice Properties Real 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.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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