Correlation Between British Land and Highlands REIT
Can any of the company-specific risk be diversified away by investing in both British Land and Highlands 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 British Land and Highlands REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British Land and Highlands REIT, you can compare the effects of market volatilities on British Land and Highlands 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 British Land with a short position of Highlands REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Land and Highlands REIT.
Diversification Opportunities for British Land and Highlands REIT
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between British and Highlands is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding British Land and Highlands REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlands REIT and British Land 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 British Land are associated (or correlated) with Highlands REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlands REIT has no effect on the direction of British Land i.e., British Land and Highlands REIT go up and down completely randomly.
Pair Corralation between British Land and Highlands REIT
If you would invest 5.62 in Highlands REIT on August 25, 2024 and sell it today you would earn a total of 5.38 from holding Highlands REIT or generate 95.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
British Land vs. Highlands REIT
Performance |
| Timeline |
| British Land |
| Highlands REIT |
British Land and Highlands REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Land and Highlands REIT
The main advantage of trading using opposite British Land and Highlands REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Land position performs unexpectedly, Highlands 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 Highlands REIT will offset losses from the drop in Highlands REIT's long position.| British Land vs. Highlands REIT | British Land vs. Fibra UNO | British Land vs. W P Carey | British Land vs. Essential Properties Realty |
| Highlands REIT vs. Smart REIT | Highlands REIT vs. Phillips Edison Co | Highlands REIT vs. Simon Property Group | Highlands REIT vs. Plaza Retail REIT |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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