Correlation Between Real Estate and Alphanam
Can any of the company-specific risk be diversified away by investing in both Real Estate and Alphanam 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 Real Estate and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate 11 and Alphanam ME, you can compare the effects of market volatilities on Real Estate and Alphanam 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 Real Estate with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and Alphanam.
Diversification Opportunities for Real Estate and Alphanam
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Real and Alphanam is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate 11 and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Real Estate 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 Real Estate 11 are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Real Estate i.e., Real Estate and Alphanam go up and down completely randomly.
Pair Corralation between Real Estate and Alphanam
Assuming the 90 days trading horizon Real Estate 11 is expected to generate 0.35 times more return on investment than Alphanam. However, Real Estate 11 is 2.84 times less risky than Alphanam. It trades about -0.03 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.07 per unit of risk. If you would invest 1,070,000 in Real Estate 11 on September 12, 2024 and sell it today you would lose (10,000) from holding Real Estate 11 or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.11% |
| Values | Daily Returns |
Real Estate 11 vs. Alphanam ME
Performance |
| Timeline |
| Real Estate 11 |
| Alphanam ME |
Real Estate and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and Alphanam
The main advantage of trading using opposite Real Estate and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Real Estate vs. VTC Telecommunications JSC | Real Estate vs. Binhthuan Agriculture Services | Real Estate vs. Vincom Retail JSC | Real Estate vs. Ha Noi Education |
| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |