Correlation Between CT Real and Magna International
Can any of the company-specific risk be diversified away by investing in both CT Real and Magna International 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 Magna International 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 Magna International, you can compare the effects of market volatilities on CT Real and Magna International 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 Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and Magna International.
Diversification Opportunities for CT Real and Magna International
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTRRF and Magna is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International 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 Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of CT Real i.e., CT Real and Magna International go up and down completely randomly.
Pair Corralation between CT Real and Magna International
If you would invest 4,152 in Magna International on September 2, 2024 and sell it today you would earn a total of 362.00 from holding Magna International or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CT Real Estate vs. Magna International
Performance |
| Timeline |
| CT Real Estate |
| Magna International |
CT Real and Magna International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Real and Magna International
The main advantage of trading using opposite CT Real and Magna International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, Magna International 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 Magna International will offset losses from the drop in Magna International's long position.| CT Real vs. Firm Capital Property | CT Real vs. Smart REIT | CT Real vs. Slate Grocery REIT | CT Real vs. Phillips Edison Co |
| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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