Correlation Between COL Financial and VistaREIT
Can any of the company-specific risk be diversified away by investing in both COL Financial and VistaREIT 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 COL Financial and VistaREIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COL Financial Group and VistaREIT, you can compare the effects of market volatilities on COL Financial and VistaREIT 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 COL Financial with a short position of VistaREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Financial and VistaREIT.
Diversification Opportunities for COL Financial and VistaREIT
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COL and VistaREIT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding COL Financial Group and VistaREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VistaREIT and COL Financial 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 COL Financial Group are associated (or correlated) with VistaREIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VistaREIT has no effect on the direction of COL Financial i.e., COL Financial and VistaREIT go up and down completely randomly.
Pair Corralation between COL Financial and VistaREIT
Assuming the 90 days trading horizon COL Financial Group is expected to under-perform the VistaREIT. In addition to that, COL Financial is 2.86 times more volatile than VistaREIT. It trades about -0.03 of its total potential returns per unit of risk. VistaREIT is currently generating about 0.11 per unit of volatility. If you would invest 156.00 in VistaREIT on September 1, 2024 and sell it today you would earn a total of 23.00 from holding VistaREIT or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
COL Financial Group vs. VistaREIT
Performance |
| Timeline |
| COL Financial Group |
| VistaREIT |
COL Financial and VistaREIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Financial and VistaREIT
The main advantage of trading using opposite COL Financial and VistaREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Financial position performs unexpectedly, VistaREIT 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 VistaREIT will offset losses from the drop in VistaREIT's long position.| COL Financial vs. Bright Kindle Resources | COL Financial vs. Allhome Corp | COL Financial vs. LFM Properties Corp | COL Financial vs. Altus Property Ventures |
| VistaREIT vs. Bright Kindle Resources | VistaREIT vs. Allhome Corp | VistaREIT vs. LFM Properties Corp | VistaREIT vs. Altus Property Ventures |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |