Correlation Between Aecon and Artis REIT
Can any of the company-specific risk be diversified away by investing in both Aecon and Artis 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 Aecon and Artis REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aecon Group and Artis REIT, you can compare the effects of market volatilities on Aecon and Artis 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 Aecon with a short position of Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aecon and Artis REIT.
Diversification Opportunities for Aecon and Artis REIT
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aecon and Artis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aecon Group and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT and Aecon 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 Aecon Group are associated (or correlated) with Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of Aecon i.e., Aecon and Artis REIT go up and down completely randomly.
Pair Corralation between Aecon and Artis REIT
Assuming the 90 days horizon Aecon Group is expected to generate 1.74 times more return on investment than Artis REIT. However, Aecon is 1.74 times more volatile than Artis REIT. It trades about -0.17 of its potential returns per unit of risk. Artis REIT is currently generating about -0.4 per unit of risk. If you would invest 2,030 in Aecon Group on September 12, 2024 and sell it today you would lose (140.00) from holding Aecon Group or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aecon Group vs. Artis REIT
Performance |
| Timeline |
| Aecon Group |
| Artis REIT |
Aecon and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aecon and Artis REIT
The main advantage of trading using opposite Aecon and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aecon position performs unexpectedly, Artis 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 Artis REIT will offset losses from the drop in Artis REIT's long position.| Aecon vs. HUMANA INC | Aecon vs. Barloworld Ltd ADR | Aecon vs. Morningstar Unconstrained Allocation | Aecon vs. Thrivent High Yield |
| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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