Correlation Between Boardwalk Real and HR Real
Can any of the company-specific risk be diversified away by investing in both Boardwalk Real and HR 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 Boardwalk Real and HR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boardwalk Real Estate and HR Real Estate, you can compare the effects of market volatilities on Boardwalk Real and HR 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 Boardwalk Real with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boardwalk Real and HR Real.
Diversification Opportunities for Boardwalk Real and HR Real
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boardwalk and HR-UN is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Boardwalk Real Estate and HR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Real Estate and Boardwalk Real 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 Boardwalk Real Estate are associated (or correlated) with HR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Real Estate has no effect on the direction of Boardwalk Real i.e., Boardwalk Real and HR Real go up and down completely randomly.
Pair Corralation between Boardwalk Real and HR Real
Assuming the 90 days trading horizon Boardwalk Real Estate is expected to under-perform the HR Real. In addition to that, Boardwalk Real is 1.32 times more volatile than HR Real Estate. It trades about -0.13 of its total potential returns per unit of risk. HR Real Estate is currently generating about -0.05 per unit of volatility. If you would invest 946.00 in HR Real Estate on November 4, 2024 and sell it today you would lose (11.00) from holding HR Real Estate or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boardwalk Real Estate vs. HR Real Estate
Performance |
| Timeline |
| Boardwalk Real Estate |
| HR Real Estate |
Boardwalk Real and HR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boardwalk Real and HR Real
The main advantage of trading using opposite Boardwalk Real and HR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boardwalk Real position performs unexpectedly, HR 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 HR Real will offset losses from the drop in HR Real's long position.| Boardwalk Real vs. Canadian Apartment Properties | Boardwalk Real vs. Dream Office Real | Boardwalk Real vs. Artis Real Estate | Boardwalk Real vs. Allied Properties Real |
| HR Real vs. RioCan Real Estate | HR Real vs. Canadian Apartment Properties | HR Real vs. SmartCentres Real Estate | HR Real vs. Allied Properties Real |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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