Correlation Between Artis REIT and Doman Building
Can any of the company-specific risk be diversified away by investing in both Artis REIT and Doman Building 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 Doman Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artis REIT and Doman Building Materials, you can compare the effects of market volatilities on Artis REIT and Doman Building 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 Doman Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Doman Building.
Diversification Opportunities for Artis REIT and Doman Building
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artis and Doman is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Doman Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doman Building Materials 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 Doman Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doman Building Materials has no effect on the direction of Artis REIT i.e., Artis REIT and Doman Building go up and down completely randomly.
Pair Corralation between Artis REIT and Doman Building
Assuming the 90 days horizon Artis REIT is expected to under-perform the Doman Building. But the otc stock apears to be less risky and, when comparing its historical volatility, Artis REIT is 1.45 times less risky than Doman Building. The otc stock trades about -0.39 of its potential returns per unit of risk. The Doman Building Materials is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Doman Building Materials on September 15, 2024 and sell it today you would lose (10.00) from holding Doman Building Materials or give up 1.54% 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. Doman Building Materials
Performance |
| Timeline |
| Artis REIT |
| Doman Building Materials |
Artis REIT and Doman Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artis REIT and Doman Building
The main advantage of trading using opposite Artis REIT and Doman Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artis REIT position performs unexpectedly, Doman Building 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 Doman Building will offset losses from the drop in Doman Building's long position.| Artis REIT vs. Ashford Hospitality Trust | Artis REIT vs. Ashford Hospitality Trust | Artis REIT vs. Braemar Hotels Resorts | Artis REIT vs. Braemar Hotels Resorts |
| Doman Building vs. Finning International | Doman Building vs. Toromont Industries | Doman Building vs. Aecon Group | Doman Building vs. BTB 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |