Correlation Between First Capital and Killam Apartment
Can any of the company-specific risk be diversified away by investing in both First Capital and Killam Apartment 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 First Capital and Killam Apartment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Capital Real and Killam Apartment Real, you can compare the effects of market volatilities on First Capital and Killam Apartment 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 First Capital with a short position of Killam Apartment. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and Killam Apartment.
Diversification Opportunities for First Capital and Killam Apartment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Killam is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding First Capital Real and Killam Apartment Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killam Apartment Real and First Capital 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 First Capital Real are associated (or correlated) with Killam Apartment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killam Apartment Real has no effect on the direction of First Capital i.e., First Capital and Killam Apartment go up and down completely randomly.
Pair Corralation between First Capital and Killam Apartment
Assuming the 90 days trading horizon First Capital Real is expected to generate 0.79 times more return on investment than Killam Apartment. However, First Capital Real is 1.26 times less risky than Killam Apartment. It trades about -0.03 of its potential returns per unit of risk. Killam Apartment Real is currently generating about -0.17 per unit of risk. If you would invest 1,786 in First Capital Real on August 30, 2024 and sell it today you would lose (11.00) from holding First Capital Real or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Capital Real vs. Killam Apartment Real
Performance |
| Timeline |
| First Capital Real |
| Killam Apartment Real |
First Capital and Killam Apartment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and Killam Apartment
The main advantage of trading using opposite First Capital and Killam Apartment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital position performs unexpectedly, Killam Apartment 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 Killam Apartment will offset losses from the drop in Killam Apartment's long position.| First Capital vs. Killam Apartment Real | First Capital vs. InterRent Real Estate | First Capital vs. Crombie Real Estate | First Capital vs. Allied Properties Real |
| Killam Apartment vs. InterRent Real Estate | Killam Apartment vs. Canadian Apartment Properties | Killam Apartment vs. Granite Real Estate | Killam Apartment vs. Crombie Real Estate |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |