Correlation Between Growthpoint Properties and Resilient Property
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and Resilient 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 Growthpoint Properties and Resilient Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and Resilient Property Income, you can compare the effects of market volatilities on Growthpoint Properties and Resilient 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 Growthpoint Properties with a short position of Resilient Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Resilient Property.
Diversification Opportunities for Growthpoint Properties and Resilient Property
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Growthpoint and Resilient is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Resilient Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resilient Property Income and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with Resilient Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resilient Property Income has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Resilient Property go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Resilient Property
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 7.61 times less return on investment than Resilient Property. In addition to that, Growthpoint Properties is 1.17 times more volatile than Resilient Property Income. It trades about 0.04 of its total potential returns per unit of risk. Resilient Property Income is currently generating about 0.39 per unit of volatility. If you would invest 565,500 in Resilient Property Income on September 12, 2024 and sell it today you would earn a total of 45,000 from holding Resilient Property Income or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growthpoint Properties vs. Resilient Property Income
Performance |
| Timeline |
| Growthpoint Properties |
| Resilient Property Income |
Growthpoint Properties and Resilient Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Resilient Property
The main advantage of trading using opposite Growthpoint Properties and Resilient Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Resilient 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 Resilient Property will offset losses from the drop in Resilient Property's long position.| Growthpoint Properties vs. Brimstone Investment | Growthpoint Properties vs. Zeder Investments | Growthpoint Properties vs. Standard Bank Group | Growthpoint Properties vs. Deneb Investments |
| Resilient Property vs. Reinet Investments SCA | Resilient Property vs. CA Sales Holdings | Resilient Property vs. Standard Bank Group | Resilient Property vs. Safari Investments RSA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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