Correlation Between Artis REIT and Aecon
Can any of the company-specific risk be diversified away by investing in both Artis REIT and Aecon 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 Artis REIT and Aecon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artis REIT and Aecon Group, you can compare the effects of market volatilities on Artis REIT and Aecon 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 Artis REIT with a short position of Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Aecon.
Diversification Opportunities for Artis REIT and Aecon
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artis and Aecon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group and Artis REIT 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 Artis REIT are associated (or correlated) with Aecon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecon Group has no effect on the direction of Artis REIT i.e., Artis REIT and Aecon go up and down completely randomly.
Pair Corralation between Artis REIT and Aecon
Assuming the 90 days horizon Artis REIT is expected to under-perform the Aecon. But the otc stock apears to be less risky and, when comparing its historical volatility, Artis REIT is 1.74 times less risky than Aecon. The otc stock trades about -0.4 of its potential returns per unit of risk. The Aecon Group is currently generating about -0.17 of returns per unit of risk over similar time horizon. 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 |
Artis REIT vs. Aecon Group
Performance |
| Timeline |
| Artis REIT |
| Aecon Group |
Artis REIT and Aecon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artis REIT and Aecon
The main advantage of trading using opposite Artis REIT and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artis REIT position performs unexpectedly, Aecon 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 Aecon will offset losses from the drop in Aecon's long position.| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
| Aecon vs. HUMANA INC | Aecon vs. Barloworld Ltd ADR | Aecon vs. Morningstar Unconstrained Allocation | Aecon vs. Thrivent High Yield |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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