Correlation Between Exemplar REITail and Rex Trueform
Can any of the company-specific risk be diversified away by investing in both Exemplar REITail and Rex Trueform 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 Exemplar REITail and Rex Trueform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exemplar REITail and Rex Trueform Group, you can compare the effects of market volatilities on Exemplar REITail and Rex Trueform 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 Exemplar REITail with a short position of Rex Trueform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exemplar REITail and Rex Trueform.
Diversification Opportunities for Exemplar REITail and Rex Trueform
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exemplar and Rex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exemplar REITail and Rex Trueform Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rex Trueform Group and Exemplar REITail 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 Exemplar REITail are associated (or correlated) with Rex Trueform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rex Trueform Group has no effect on the direction of Exemplar REITail i.e., Exemplar REITail and Rex Trueform go up and down completely randomly.
Pair Corralation between Exemplar REITail and Rex Trueform
If you would invest (100.00) in Exemplar REITail on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Exemplar REITail or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Exemplar REITail vs. Rex Trueform Group
Performance |
| Timeline |
| Exemplar REITail |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Rex Trueform Group |
Exemplar REITail and Rex Trueform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exemplar REITail and Rex Trueform
The main advantage of trading using opposite Exemplar REITail and Rex Trueform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exemplar REITail position performs unexpectedly, Rex Trueform 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 Rex Trueform will offset losses from the drop in Rex Trueform's long position.| Exemplar REITail vs. CA Sales Holdings | Exemplar REITail vs. Frontier Transport Holdings | Exemplar REITail vs. Afine Investments | Exemplar REITail vs. eMedia Holdings Limited |
| Rex Trueform vs. Mr Price Group | Rex Trueform vs. Truworths International | Rex Trueform vs. Rex Trueform Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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