Correlation Between Amazon CDR and Crombie Real
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Crombie Real 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 Amazon CDR and Crombie Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Crombie Real Estate, you can compare the effects of market volatilities on Amazon CDR and Crombie Real 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 Amazon CDR with a short position of Crombie Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Crombie Real.
Diversification Opportunities for Amazon CDR and Crombie Real
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amazon and Crombie is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Crombie Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crombie Real Estate and Amazon CDR 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 Amazon CDR are associated (or correlated) with Crombie Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crombie Real Estate has no effect on the direction of Amazon CDR i.e., Amazon CDR and Crombie Real go up and down completely randomly.
Pair Corralation between Amazon CDR and Crombie Real
Assuming the 90 days trading horizon Amazon CDR is expected to generate 1.94 times more return on investment than Crombie Real. However, Amazon CDR is 1.94 times more volatile than Crombie Real Estate. It trades about 0.07 of its potential returns per unit of risk. Crombie Real Estate is currently generating about 0.12 per unit of risk. If you would invest 2,213 in Amazon CDR on September 5, 2024 and sell it today you would earn a total of 329.00 from holding Amazon CDR or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Crombie Real Estate
Performance |
| Timeline |
| Amazon CDR |
| Crombie Real Estate |
Amazon CDR and Crombie Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Crombie Real
The main advantage of trading using opposite Amazon CDR and Crombie Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Crombie Real 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 Crombie Real will offset losses from the drop in Crombie Real's long position.| Amazon CDR vs. Northstar Clean Technologies | Amazon CDR vs. Chemtrade Logistics Income | Amazon CDR vs. SalesforceCom CDR | Amazon CDR vs. Ocumetics Technology Corp |
| Crombie Real vs. Artis Real Estate | Crombie Real vs. Choice Properties Real | Crombie Real vs. Killam Apartment Real | Crombie Real vs. Boardwalk Real Estate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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