Correlation Between Growthpoint Properties and Reinet Investments
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and Reinet Investments 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 Reinet Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and Reinet Investments SCA, you can compare the effects of market volatilities on Growthpoint Properties and Reinet Investments 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 Reinet Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Reinet Investments.
Diversification Opportunities for Growthpoint Properties and Reinet Investments
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Growthpoint and Reinet is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Reinet Investments SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinet Investments SCA 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 Reinet Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinet Investments SCA has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Reinet Investments go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Reinet Investments
Assuming the 90 days trading horizon Growthpoint Properties is expected to under-perform the Reinet Investments. In addition to that, Growthpoint Properties is 1.07 times more volatile than Reinet Investments SCA. It trades about -0.07 of its total potential returns per unit of risk. Reinet Investments SCA is currently generating about -0.03 per unit of volatility. If you would invest 4,848,200 in Reinet Investments SCA on August 28, 2024 and sell it today you would lose (39,700) from holding Reinet Investments SCA or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Growthpoint Properties vs. Reinet Investments SCA
Performance |
| Timeline |
| Growthpoint Properties |
| Reinet Investments SCA |
Growthpoint Properties and Reinet Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Reinet Investments
The main advantage of trading using opposite Growthpoint Properties and Reinet Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Reinet Investments 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 Reinet Investments will offset losses from the drop in Reinet Investments' long position.| Growthpoint Properties vs. CA Sales Holdings | Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. British American Tobacco | Growthpoint Properties vs. HomeChoice Investments |
| Reinet Investments vs. CA Sales Holdings | Reinet Investments vs. ABSA Bank Limited | Reinet Investments vs. Astral Foods | Reinet Investments vs. Advtech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |