Correlation Between CT Real and Killam Apartment
Can any of the company-specific risk be diversified away by investing in both CT Real and Killam Apartment 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 CT Real and Killam Apartment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Real Estate and Killam Apartment Real, you can compare the effects of market volatilities on CT Real and Killam Apartment 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 CT Real with a short position of Killam Apartment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and Killam Apartment.
Diversification Opportunities for CT Real and Killam Apartment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CRT-UN and Killam is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and Killam Apartment Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killam Apartment Real and CT 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 CT Real Estate are associated (or correlated) with Killam Apartment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killam Apartment Real has no effect on the direction of CT Real i.e., CT Real and Killam Apartment go up and down completely randomly.
Pair Corralation between CT Real and Killam Apartment
Assuming the 90 days trading horizon CT Real Estate is expected to generate 0.83 times more return on investment than Killam Apartment. However, CT Real Estate is 1.2 times less risky than Killam Apartment. It trades about -0.11 of its potential returns per unit of risk. Killam Apartment Real is currently generating about -0.31 per unit of risk. If you would invest 1,543 in CT Real Estate on August 29, 2024 and sell it today you would lose (33.00) from holding CT Real Estate or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CT Real Estate vs. Killam Apartment Real
Performance |
| Timeline |
| CT Real Estate |
| Killam Apartment Real |
CT Real and Killam Apartment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Real and Killam Apartment
The main advantage of trading using opposite CT Real and Killam Apartment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, Killam Apartment 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 Killam Apartment will offset losses from the drop in Killam Apartment's long position.| CT Real vs. Choice Properties Real | CT Real vs. Crombie Real Estate | CT Real vs. Granite Real Estate | CT Real vs. Allied Properties Real |
| Killam Apartment vs. InterRent Real Estate | Killam Apartment vs. Canadian Apartment Properties | Killam Apartment vs. Granite Real Estate | Killam Apartment vs. Crombie Real Estate |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |