Correlation Between Golden Ventures and BA Airport
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and BA Airport 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 Golden Ventures and BA Airport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ventures Leasehold and BA Airport Leasehold, you can compare the effects of market volatilities on Golden Ventures and BA Airport 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 Golden Ventures with a short position of BA Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and BA Airport.
Diversification Opportunities for Golden Ventures and BA Airport
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and BAREIT is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and BA Airport Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BA Airport Leasehold and Golden Ventures 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 Golden Ventures Leasehold are associated (or correlated) with BA Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BA Airport Leasehold has no effect on the direction of Golden Ventures i.e., Golden Ventures and BA Airport go up and down completely randomly.
Pair Corralation between Golden Ventures and BA Airport
Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to generate 2.08 times more return on investment than BA Airport. However, Golden Ventures is 2.08 times more volatile than BA Airport Leasehold. It trades about 0.05 of its potential returns per unit of risk. BA Airport Leasehold is currently generating about -0.17 per unit of risk. If you would invest 675.00 in Golden Ventures Leasehold on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Golden Ventures Leasehold or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ventures Leasehold vs. BA Airport Leasehold
Performance |
| Timeline |
| Golden Ventures Leasehold |
| BA Airport Leasehold |
Golden Ventures and BA Airport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and BA Airport
The main advantage of trading using opposite Golden Ventures and BA Airport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, BA Airport 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 BA Airport will offset losses from the drop in BA Airport's long position.| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
| BA Airport vs. LH Shopping Centers | BA Airport vs. HEMARAJ INDUSTRIAL PROPERTY | BA Airport vs. Land and Houses |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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