Correlation Between Corenergy Infras and Newlake Capital
Can any of the company-specific risk be diversified away by investing in both Corenergy Infras and Newlake Capital 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 Corenergy Infras and Newlake Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corenergy Infras and Newlake Capital Partners, you can compare the effects of market volatilities on Corenergy Infras and Newlake Capital 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 Corenergy Infras with a short position of Newlake Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corenergy Infras and Newlake Capital.
Diversification Opportunities for Corenergy Infras and Newlake Capital
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corenergy and Newlake is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Corenergy Infras and Newlake Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newlake Capital Partners and Corenergy Infras 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 Corenergy Infras are associated (or correlated) with Newlake Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newlake Capital Partners has no effect on the direction of Corenergy Infras i.e., Corenergy Infras and Newlake Capital go up and down completely randomly.
Pair Corralation between Corenergy Infras and Newlake Capital
If you would invest 116.00 in Corenergy Infras on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Corenergy Infras or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Corenergy Infras vs. Newlake Capital Partners
Performance |
| Timeline |
| Corenergy Infras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Newlake Capital Partners |
Corenergy Infras and Newlake Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corenergy Infras and Newlake Capital
The main advantage of trading using opposite Corenergy Infras and Newlake Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corenergy Infras position performs unexpectedly, Newlake Capital 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 Newlake Capital will offset losses from the drop in Newlake Capital's long position.| Corenergy Infras vs. EPR Properties | Corenergy Infras vs. Digital Realty Trust | Corenergy Infras vs. EPR Properties | Corenergy Infras vs. Farmland Partners |
| Newlake Capital vs. AFC Gamma | Newlake Capital vs. Alpineome Property Trust | Newlake Capital vs. Chicago Atlantic Real | Newlake Capital vs. Power 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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