Correlation Between Access Flex and Real Estate
Can any of the company-specific risk be diversified away by investing in both Access Flex and Real Estate 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 Access Flex and Real Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Flex High and Real Estate Fund, you can compare the effects of market volatilities on Access Flex and Real Estate 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 Access Flex with a short position of Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Flex and Real Estate.
Diversification Opportunities for Access Flex and Real Estate
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Access and REAL is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Access Flex High and Real Estate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Fund and Access Flex 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 Access Flex High are associated (or correlated) with Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Fund has no effect on the direction of Access Flex i.e., Access Flex and Real Estate go up and down completely randomly.
Pair Corralation between Access Flex and Real Estate
Assuming the 90 days horizon Access Flex High is expected to generate 0.27 times more return on investment than Real Estate. However, Access Flex High is 3.71 times less risky than Real Estate. It trades about 0.03 of its potential returns per unit of risk. Real Estate Fund is currently generating about -0.15 per unit of risk. If you would invest 3,000 in Access Flex High on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Access Flex High or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Flex High vs. Real Estate Fund
Performance |
| Timeline |
| Access Flex High |
| Real Estate Fund |
Access Flex and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Flex and Real Estate
The main advantage of trading using opposite Access Flex and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Flex position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate's long position.| Access Flex vs. Retirement Living Through | Access Flex vs. Dimensional Retirement Income | Access Flex vs. Putnman Retirement Ready | Access Flex vs. Wilmington Trust Retirement |
| Real Estate vs. Ab High Income | Real Estate vs. Mesirow Financial High | Real Estate vs. Millerhoward High Income | Real Estate vs. Access Flex High |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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