Correlation Between Aedifica and Riocan REIT
Can any of the company-specific risk be diversified away by investing in both Aedifica and Riocan REIT 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 Riocan REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedifica SA and Riocan REIT, you can compare the effects of market volatilities on Aedifica and Riocan REIT 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 Riocan REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedifica and Riocan REIT.
Diversification Opportunities for Aedifica and Riocan REIT
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aedifica and Riocan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aedifica SA and Riocan REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riocan REIT 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 Riocan REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riocan REIT has no effect on the direction of Aedifica i.e., Aedifica and Riocan REIT go up and down completely randomly.
Pair Corralation between Aedifica and Riocan REIT
Assuming the 90 days horizon Aedifica SA is expected to generate 2.08 times more return on investment than Riocan REIT. However, Aedifica is 2.08 times more volatile than Riocan REIT. It trades about 0.13 of its potential returns per unit of risk. Riocan REIT is currently generating about 0.15 per unit of risk. If you would invest 7,450 in Aedifica SA on November 12, 2025 and sell it today you would earn a total of 1,328 from holding Aedifica SA or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Aedifica SA vs. Riocan REIT
Performance |
| Timeline |
| Aedifica SA |
| Riocan REIT |
Aedifica and Riocan REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedifica and Riocan REIT
The main advantage of trading using opposite Aedifica and Riocan REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedifica position performs unexpectedly, Riocan REIT 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 Riocan REIT will offset losses from the drop in Riocan REIT's long position.| Aedifica vs. United Industrial | Aedifica vs. Unite Group PLC | Aedifica vs. Inmobiliaria Colonial SOCIMI | Aedifica vs. Riocan REIT |
| Riocan REIT vs. Capital Counties Properties | Riocan REIT vs. Japan Metropolitan | Riocan REIT vs. Unite Group PLC | Riocan REIT vs. Frasers Centrepoint Trust |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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