Correlation Between CALTAGIRONE EDITORE and Continental
Can any of the company-specific risk be diversified away by investing in both CALTAGIRONE EDITORE and Continental 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 CALTAGIRONE EDITORE and Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CALTAGIRONE EDITORE and Camden Property Trust, you can compare the effects of market volatilities on CALTAGIRONE EDITORE and Continental 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 CALTAGIRONE EDITORE with a short position of Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of CALTAGIRONE EDITORE and Continental.
Diversification Opportunities for CALTAGIRONE EDITORE and Continental
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between CALTAGIRONE and Continental is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CALTAGIRONE EDITORE and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of CALTAGIRONE EDITORE i.e., CALTAGIRONE EDITORE and Continental go up and down completely randomly.
Pair Corralation between CALTAGIRONE EDITORE and Continental
Assuming the 90 days trading horizon CALTAGIRONE EDITORE is expected to generate 1.16 times more return on investment than Continental. However, CALTAGIRONE EDITORE is 1.16 times more volatile than Camden Property Trust. It trades about 0.24 of its potential returns per unit of risk. Camden Property Trust is currently generating about -0.09 per unit of risk. If you would invest 130.00 in CALTAGIRONE EDITORE on October 26, 2024 and sell it today you would earn a total of 10.00 from holding CALTAGIRONE EDITORE or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CALTAGIRONE EDITORE vs. Camden Property Trust
Performance |
| Timeline |
| CALTAGIRONE EDITORE |
| Camden Property Trust |
CALTAGIRONE EDITORE and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CALTAGIRONE EDITORE and Continental
The main advantage of trading using opposite CALTAGIRONE EDITORE and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CALTAGIRONE EDITORE position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| CALTAGIRONE EDITORE vs. The Boston Beer | CALTAGIRONE EDITORE vs. Thai Beverage Public | CALTAGIRONE EDITORE vs. China Resources Beer | CALTAGIRONE EDITORE vs. Canadian Utilities Limited |
| Continental vs. Insteel Industries | Continental vs. CALTAGIRONE EDITORE | Continental vs. ANGANG STEEL H | Continental vs. Computershare Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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