Correlation Between Hampton Financial and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Hampton Financial and Slate Grocery 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 Hampton Financial and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hampton Financial Corp and Slate Grocery REIT, you can compare the effects of market volatilities on Hampton Financial and Slate Grocery 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 Hampton Financial with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hampton Financial and Slate Grocery.
Diversification Opportunities for Hampton Financial and Slate Grocery
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hampton and Slate is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hampton Financial Corp and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Hampton Financial 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 Hampton Financial Corp are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Hampton Financial i.e., Hampton Financial and Slate Grocery go up and down completely randomly.
Pair Corralation between Hampton Financial and Slate Grocery
Assuming the 90 days horizon Hampton Financial Corp is expected to under-perform the Slate Grocery. In addition to that, Hampton Financial is 1.29 times more volatile than Slate Grocery REIT. It trades about -0.01 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.09 per unit of volatility. If you would invest 700.00 in Slate Grocery REIT on September 14, 2024 and sell it today you would earn a total of 331.00 from holding Slate Grocery REIT or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Hampton Financial Corp vs. Slate Grocery REIT
Performance |
| Timeline |
| Hampton Financial Corp |
| Slate Grocery REIT |
Hampton Financial and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hampton Financial and Slate Grocery
The main advantage of trading using opposite Hampton Financial and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hampton Financial position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Hampton Financial vs. Slate Grocery REIT | Hampton Financial vs. Morguard Real Estate | Hampton Financial vs. iShares Canadian HYBrid | Hampton Financial vs. Altagas Cum Red |
| Slate Grocery vs. Eddy Smart Home | Slate Grocery vs. Data Communications Management | Slate Grocery vs. Sangoma Technologies Corp | Slate Grocery vs. Profound Medical Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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