Correlation Between European Residential and CDSPI Petite
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By analyzing existing cross correlation between European Residential Real and CDSPI petite cap, you can compare the effects of market volatilities on European Residential and CDSPI Petite 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 European Residential with a short position of CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Residential and CDSPI Petite.
Diversification Opportunities for European Residential and CDSPI Petite
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between European and CDSPI is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding European Residential Real and CDSPI petite cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI petite cap and European Residential 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 European Residential Real are associated (or correlated) with CDSPI Petite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI petite cap has no effect on the direction of European Residential i.e., European Residential and CDSPI Petite go up and down completely randomly.
Pair Corralation between European Residential and CDSPI Petite
Assuming the 90 days trading horizon European Residential Real is expected to under-perform the CDSPI Petite. In addition to that, European Residential is 2.53 times more volatile than CDSPI petite cap. It trades about 0.0 of its total potential returns per unit of risk. CDSPI petite cap is currently generating about 0.08 per unit of volatility. If you would invest 5,156 in CDSPI petite cap on October 29, 2024 and sell it today you would earn a total of 2,260 from holding CDSPI petite cap or generate 43.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
European Residential Real vs. CDSPI petite cap
Performance |
| Timeline |
| European Residential Real |
| CDSPI petite cap |
European Residential and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Residential and CDSPI Petite
The main advantage of trading using opposite European Residential and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Residential position performs unexpectedly, CDSPI Petite 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 CDSPI Petite will offset losses from the drop in CDSPI Petite's long position.| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
| CDSPI Petite vs. Fidelity Canadian Growth | CDSPI Petite vs. Tangerine Equity Growth | CDSPI Petite vs. Edgepoint Cdn Growth | CDSPI Petite vs. Mackenzie Canadian Growth |
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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