Correlation Between Douglas Emmett and FRESLN
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By analyzing existing cross correlation between Douglas Emmett and FRESLN 425 02 OCT 50, you can compare the effects of market volatilities on Douglas Emmett and FRESLN 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 Douglas Emmett with a short position of FRESLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Douglas Emmett and FRESLN.
Diversification Opportunities for Douglas Emmett and FRESLN
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Douglas and FRESLN is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Douglas Emmett and FRESLN 425 02 OCT 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRESLN 425 02 and Douglas Emmett 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 Douglas Emmett are associated (or correlated) with FRESLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRESLN 425 02 has no effect on the direction of Douglas Emmett i.e., Douglas Emmett and FRESLN go up and down completely randomly.
Pair Corralation between Douglas Emmett and FRESLN
Considering the 90-day investment horizon Douglas Emmett is expected to generate 1.64 times more return on investment than FRESLN. However, Douglas Emmett is 1.64 times more volatile than FRESLN 425 02 OCT 50. It trades about 0.03 of its potential returns per unit of risk. FRESLN 425 02 OCT 50 is currently generating about -0.01 per unit of risk. If you would invest 1,434 in Douglas Emmett on November 5, 2024 and sell it today you would earn a total of 402.00 from holding Douglas Emmett or generate 28.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 24.09% |
Values | Daily Returns |
Douglas Emmett vs. FRESLN 425 02 OCT 50
Performance |
Timeline |
Douglas Emmett |
FRESLN 425 02 |
Douglas Emmett and FRESLN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Douglas Emmett and FRESLN
The main advantage of trading using opposite Douglas Emmett and FRESLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Douglas Emmett position performs unexpectedly, FRESLN 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 FRESLN will offset losses from the drop in FRESLN's long position.Douglas Emmett vs. Brandywine Realty Trust | Douglas Emmett vs. Kilroy Realty Corp | Douglas Emmett vs. Piedmont Office Realty | Douglas Emmett vs. City Office |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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