Correlation Between Great Elm and Presidio Property
Can any of the company-specific risk be diversified away by investing in both Great Elm and Presidio 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 Great Elm and Presidio Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Elm Capital and Presidio Property Trust, you can compare the effects of market volatilities on Great Elm and Presidio 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 Great Elm with a short position of Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Elm and Presidio Property.
Diversification Opportunities for Great Elm and Presidio Property
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Presidio is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Great Elm Capital and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust and Great Elm 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 Great Elm Capital are associated (or correlated) with Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Great Elm i.e., Great Elm and Presidio Property go up and down completely randomly.
Pair Corralation between Great Elm and Presidio Property
Given the investment horizon of 90 days Great Elm Capital is expected to generate 0.24 times more return on investment than Presidio Property. However, Great Elm Capital is 4.13 times less risky than Presidio Property. It trades about 0.0 of its potential returns per unit of risk. Presidio Property Trust is currently generating about -0.09 per unit of risk. If you would invest 1,067 in Great Elm Capital on November 4, 2024 and sell it today you would lose (2.00) from holding Great Elm Capital or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Elm Capital vs. Presidio Property Trust
Performance |
| Timeline |
| Great Elm Capital |
| Presidio Property Trust |
Great Elm and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Elm and Presidio Property
The main advantage of trading using opposite Great Elm and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Elm position performs unexpectedly, Presidio 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| Great Elm vs. John Hancock Investors | Great Elm vs. MFS Charter Income | Great Elm vs. GCM Grosvenor | Great Elm vs. BlackRock ESG Capital |
| Presidio Property vs. Kennedy Wilson Holdings | Presidio Property vs. Belpointe PREP LLC | Presidio Property vs. Ucommune International | Presidio Property vs. Zillow 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |