Correlation Between Crombie Real and HR Real
Can any of the company-specific risk be diversified away by investing in both Crombie Real and HR 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 Crombie Real and HR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crombie Real Estate and HR Real Estate, you can compare the effects of market volatilities on Crombie Real and HR 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 Crombie Real with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crombie Real and HR Real.
Diversification Opportunities for Crombie Real and HR Real
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crombie and HR-UN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Crombie Real Estate and HR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Real Estate and Crombie 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 Crombie Real Estate are associated (or correlated) with HR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Real Estate has no effect on the direction of Crombie Real i.e., Crombie Real and HR Real go up and down completely randomly.
Pair Corralation between Crombie Real and HR Real
Assuming the 90 days trading horizon Crombie Real Estate is expected to generate 0.77 times more return on investment than HR Real. However, Crombie Real Estate is 1.29 times less risky than HR Real. It trades about 0.04 of its potential returns per unit of risk. HR Real Estate is currently generating about -0.05 per unit of risk. If you would invest 1,335 in Crombie Real Estate on November 4, 2024 and sell it today you would earn a total of 9.00 from holding Crombie Real Estate or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crombie Real Estate vs. HR Real Estate
Performance |
| Timeline |
| Crombie Real Estate |
| HR Real Estate |
Crombie Real and HR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crombie Real and HR Real
The main advantage of trading using opposite Crombie Real and HR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crombie Real position performs unexpectedly, HR 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 HR Real will offset losses from the drop in HR Real's long position.| Crombie Real vs. Artis Real Estate | Crombie Real vs. Choice Properties Real | Crombie Real vs. Killam Apartment Real | Crombie Real vs. Boardwalk Real Estate |
| HR Real vs. RioCan Real Estate | HR Real vs. Canadian Apartment Properties | HR Real vs. SmartCentres Real Estate | HR Real vs. Allied Properties Real |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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