Correlation Between Dividend Growth and HR Real
Can any of the company-specific risk be diversified away by investing in both Dividend Growth 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 Dividend Growth and HR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dividend Growth Split and HR Real Estate, you can compare the effects of market volatilities on Dividend Growth 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 Dividend Growth with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend Growth and HR Real.
Diversification Opportunities for Dividend Growth and HR Real
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dividend and HR-UN is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dividend Growth Split 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 Dividend Growth 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 Dividend Growth Split 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 Dividend Growth i.e., Dividend Growth and HR Real go up and down completely randomly.
Pair Corralation between Dividend Growth and HR Real
Assuming the 90 days trading horizon Dividend Growth Split is expected to generate 0.52 times more return on investment than HR Real. However, Dividend Growth Split is 1.92 times less risky than HR Real. It trades about 0.36 of its potential returns per unit of risk. HR Real Estate is currently generating about -0.46 per unit of risk. If you would invest 698.00 in Dividend Growth Split on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Dividend Growth Split or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dividend Growth Split vs. HR Real Estate
Performance |
| Timeline |
| Dividend Growth Split |
| HR Real Estate |
Dividend Growth and HR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dividend Growth and HR Real
The main advantage of trading using opposite Dividend Growth and HR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend Growth 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.| Dividend Growth vs. Life Banc Split | Dividend Growth vs. North American Financial | Dividend Growth vs. Financial 15 Split | Dividend Growth vs. Dividend 15 Split |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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