Correlation Between British Land and Argosy Property
Can any of the company-specific risk be diversified away by investing in both British Land and Argosy Property 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 Argosy Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British Land and Argosy Property Limited, you can compare the effects of market volatilities on British Land and Argosy Property 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 Argosy Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Land and Argosy Property.
Diversification Opportunities for British Land and Argosy Property
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between British and Argosy is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding British Land and Argosy Property Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Property 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 Argosy Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Property has no effect on the direction of British Land i.e., British Land and Argosy Property go up and down completely randomly.
Pair Corralation between British Land and Argosy Property
Assuming the 90 days horizon British Land is expected to generate 8.89 times more return on investment than Argosy Property. However, British Land is 8.89 times more volatile than Argosy Property Limited. It trades about 0.07 of its potential returns per unit of risk. Argosy Property Limited is currently generating about 0.15 per unit of risk. If you would invest 414.00 in British Land on September 14, 2024 and sell it today you would earn a total of 155.00 from holding British Land or generate 37.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.91% |
| Values | Daily Returns |
British Land vs. Argosy Property Limited
Performance |
| Timeline |
| British Land |
| Argosy Property |
British Land and Argosy Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Land and Argosy Property
The main advantage of trading using opposite British Land and Argosy Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Land position performs unexpectedly, Argosy Property 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 Argosy Property will offset losses from the drop in Argosy Property'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 |
| Argosy Property vs. Global Net Lease, | Argosy Property vs. VICI Properties | Argosy Property vs. British Land | Argosy Property vs. Highlands 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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