Correlation Between City National and Pender Real
Can any of the company-specific risk be diversified away by investing in both City National and Pender 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 City National and Pender Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Pender Real Estate, you can compare the effects of market volatilities on City National and Pender 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 City National with a short position of Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Pender Real.
Diversification Opportunities for City National and Pender Real
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and Pender is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate and City National 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 City National Rochdale are associated (or correlated) with Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of City National i.e., City National and Pender Real go up and down completely randomly.
Pair Corralation between City National and Pender Real
If you would invest 1,000.00 in Pender Real Estate on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Pender Real Estate or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.38% |
| Values | Daily Returns |
City National Rochdale vs. Pender Real Estate
Performance |
| Timeline |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pender Real Estate |
City National and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Pender Real
The main advantage of trading using opposite City National and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Pender 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 Pender Real will offset losses from the drop in Pender Real's long position.| City National vs. Allianzgi Health Sciences | City National vs. Tekla Healthcare Opportunities | City National vs. Highland Longshort Healthcare | City National vs. Blackrock Health Sciences |
| Pender Real vs. Ab Global Risk | Pender Real vs. Calvert High Yield | Pender Real vs. Alliancebernstein Global High | Pender Real vs. Ab High Income |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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