Correlation Between European Residential and Maple Peak
Can any of the company-specific risk be diversified away by investing in both European Residential and Maple Peak 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 European Residential and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between European Residential Real and Maple Peak Investments, you can compare the effects of market volatilities on European Residential and Maple Peak 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 Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Residential and Maple Peak.
Diversification Opportunities for European Residential and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between European and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding European Residential Real and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments 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 Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of European Residential i.e., European Residential and Maple Peak go up and down completely randomly.
Pair Corralation between European Residential and Maple Peak
If you would invest 236.00 in European Residential Real on November 27, 2024 and sell it today you would earn a total of 13.00 from holding European Residential Real or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
European Residential Real vs. Maple Peak Investments
Performance |
| Timeline |
| European Residential Real |
| Maple Peak Investments |
European Residential and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Residential and Maple Peak
The main advantage of trading using opposite European Residential and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Residential position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak'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 |
| Maple Peak vs. McEwen Mining | Maple Peak vs. Slate Grocery REIT | Maple Peak vs. Gamehost | Maple Peak vs. Magna Mining |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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