Correlation Between Grand Canal and MFC Industrial
Can any of the company-specific risk be diversified away by investing in both Grand Canal and MFC 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 Grand Canal and MFC Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canal Land and MFC Industrial Real, you can compare the effects of market volatilities on Grand Canal and MFC 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 Grand Canal with a short position of MFC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canal and MFC Industrial.
Diversification Opportunities for Grand Canal and MFC Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and MFC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canal Land and MFC Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Industrial Real and Grand Canal 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 Grand Canal Land are associated (or correlated) with MFC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Industrial Real has no effect on the direction of Grand Canal i.e., Grand Canal and MFC Industrial go up and down completely randomly.
Pair Corralation between Grand Canal and MFC Industrial
If you would invest 36.00 in MFC Industrial Real on August 31, 2024 and sell it today you would lose (7.00) from holding MFC Industrial Real or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grand Canal Land vs. MFC Industrial Real
Performance |
| Timeline |
| Grand Canal Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| MFC Industrial Real |
Grand Canal and MFC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canal and MFC Industrial
The main advantage of trading using opposite Grand Canal and MFC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canal position performs unexpectedly, MFC 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 MFC Industrial will offset losses from the drop in MFC Industrial's long position.The idea behind Grand Canal Land and MFC Industrial Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MFC Industrial vs. Land and Houses | MFC Industrial vs. Major Cineplex Lifestyle | MFC Industrial vs. LH Shopping Centers | MFC Industrial vs. Impact Growth REIT |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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