Correlation Between BTB Real and Chartwell Retirement
Can any of the company-specific risk be diversified away by investing in both BTB Real and Chartwell Retirement 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 BTB Real and Chartwell Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTB Real Estate and Chartwell Retirement Residences, you can compare the effects of market volatilities on BTB Real and Chartwell Retirement 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 BTB Real with a short position of Chartwell Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTB Real and Chartwell Retirement.
Diversification Opportunities for BTB Real and Chartwell Retirement
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between BTB and Chartwell is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BTB Real Estate and Chartwell Retirement Residence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chartwell Retirement and BTB 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 BTB Real Estate are associated (or correlated) with Chartwell Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chartwell Retirement has no effect on the direction of BTB Real i.e., BTB Real and Chartwell Retirement go up and down completely randomly.
Pair Corralation between BTB Real and Chartwell Retirement
Assuming the 90 days horizon BTB Real Estate is expected to under-perform the Chartwell Retirement. But the pink sheet apears to be less risky and, when comparing its historical volatility, BTB Real Estate is 1.04 times less risky than Chartwell Retirement. The pink sheet trades about -0.35 of its potential returns per unit of risk. The Chartwell Retirement Residences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Chartwell Retirement Residences on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Chartwell Retirement Residences or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTB Real Estate vs. Chartwell Retirement Residence
Performance |
| Timeline |
| BTB Real Estate |
| Chartwell Retirement |
BTB Real and Chartwell Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTB Real and Chartwell Retirement
The main advantage of trading using opposite BTB Real and Chartwell Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTB Real position performs unexpectedly, Chartwell Retirement 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 Chartwell Retirement will offset losses from the drop in Chartwell Retirement's long position.| BTB Real vs. City Office | BTB Real vs. Vornado Realty Trust | BTB Real vs. Cousins Properties Incorporated | BTB Real vs. Highwoods Properties |
| Chartwell Retirement vs. CareTrust REIT | Chartwell Retirement vs. Global Medical REIT | Chartwell Retirement vs. Universal Health Realty | Chartwell Retirement vs. Healthpeak Properties |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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