Correlation Between Fortis Pref and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both Fortis Pref and Dream Industrial 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 Fortis Pref and Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortis Pref M and Dream Industrial Real, you can compare the effects of market volatilities on Fortis Pref and Dream Industrial 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 Fortis Pref with a short position of Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortis Pref and Dream Industrial.
Diversification Opportunities for Fortis Pref and Dream Industrial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortis and Dream is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fortis Pref M and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real and Fortis Pref 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 Fortis Pref M are associated (or correlated) with Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Fortis Pref i.e., Fortis Pref and Dream Industrial go up and down completely randomly.
Pair Corralation between Fortis Pref and Dream Industrial
Assuming the 90 days trading horizon Fortis Pref M is expected to generate 0.65 times more return on investment than Dream Industrial. However, Fortis Pref M is 1.53 times less risky than Dream Industrial. It trades about 0.07 of its potential returns per unit of risk. Dream Industrial Real is currently generating about -0.01 per unit of risk. If you would invest 1,664 in Fortis Pref M on October 25, 2024 and sell it today you would earn a total of 491.00 from holding Fortis Pref M or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortis Pref M vs. Dream Industrial Real
Performance |
| Timeline |
| Fortis Pref M |
| Dream Industrial Real |
Fortis Pref and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortis Pref and Dream Industrial
The main advantage of trading using opposite Fortis Pref and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortis Pref position performs unexpectedly, Dream Industrial 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 Dream Industrial will offset losses from the drop in Dream Industrial's long position.| Fortis Pref vs. CVW CleanTech | Fortis Pref vs. Northstar Clean Technologies | Fortis Pref vs. DIRTT Environmental Solutions | Fortis Pref vs. Evertz Technologies Limited |
| Dream Industrial vs. Granite Real Estate | Dream Industrial vs. NorthWest Healthcare Properties | Dream Industrial vs. Choice Properties Real | Dream Industrial vs. Canadian Apartment Properties |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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