Correlation Between Fair Oaks and TR Property
Can any of the company-specific risk be diversified away by investing in both Fair Oaks and TR Property 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 Fair Oaks and TR Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Oaks Income and TR Property Investment, you can compare the effects of market volatilities on Fair Oaks and TR Property 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 Fair Oaks with a short position of TR Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Oaks and TR Property.
Diversification Opportunities for Fair Oaks and TR Property
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fair and TRY is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fair Oaks Income and TR Property Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Property Investment and Fair Oaks 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 Fair Oaks Income are associated (or correlated) with TR Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Property Investment has no effect on the direction of Fair Oaks i.e., Fair Oaks and TR Property go up and down completely randomly.
Pair Corralation between Fair Oaks and TR Property
Assuming the 90 days trading horizon Fair Oaks Income is expected to generate 0.42 times more return on investment than TR Property. However, Fair Oaks Income is 2.36 times less risky than TR Property. It trades about 0.13 of its potential returns per unit of risk. TR Property Investment is currently generating about -0.01 per unit of risk. If you would invest 49.00 in Fair Oaks Income on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Fair Oaks Income or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Oaks Income vs. TR Property Investment
Performance |
| Timeline |
| Fair Oaks Income |
| TR Property Investment |
Fair Oaks and TR Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Oaks and TR Property
The main advantage of trading using opposite Fair Oaks and TR Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Oaks position performs unexpectedly, TR Property 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 TR Property will offset losses from the drop in TR Property's long position.| Fair Oaks vs. Toyota Motor Corp | Fair Oaks vs. SoftBank Group Corp | Fair Oaks vs. OTP Bank Nyrt | Fair Oaks vs. Hershey Co |
| TR Property vs. Catalyst Media Group | TR Property vs. CATLIN GROUP | TR Property vs. Tamburi Investment Partners | TR Property vs. Magnora ASA |
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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