Correlation Between EPR Properties and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both EPR Properties and Cresud SACIF 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 EPR Properties and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPR Properties and Cresud SACIF y, you can compare the effects of market volatilities on EPR Properties and Cresud SACIF 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 EPR Properties with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPR Properties and Cresud SACIF.
Diversification Opportunities for EPR Properties and Cresud SACIF
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EPR and Cresud is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding EPR Properties and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and EPR Properties 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 EPR Properties are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of EPR Properties i.e., EPR Properties and Cresud SACIF go up and down completely randomly.
Pair Corralation between EPR Properties and Cresud SACIF
Considering the 90-day investment horizon EPR Properties is expected to generate 232.56 times less return on investment than Cresud SACIF. But when comparing it to its historical volatility, EPR Properties is 2.93 times less risky than Cresud SACIF. It trades about 0.0 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Cresud SACIF y on September 1, 2024 and sell it today you would earn a total of 239.00 from holding Cresud SACIF y or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EPR Properties vs. Cresud SACIF y
Performance |
| Timeline |
| EPR Properties |
| Cresud SACIF y |
EPR Properties and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPR Properties and Cresud SACIF
The main advantage of trading using opposite EPR Properties and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPR Properties position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| EPR Properties vs. Equinix | EPR Properties vs. Crown Castle | EPR Properties vs. American Tower Corp | EPR Properties vs. Iron Mountain Incorporated |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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