Correlation Between Helios Fairfax and CT Real
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax and CT Real 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 Helios Fairfax and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and CT Real Estate, you can compare the effects of market volatilities on Helios Fairfax and CT Real 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 Helios Fairfax with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and CT Real.
Diversification Opportunities for Helios Fairfax and CT Real
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helios and CRT-UN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Helios Fairfax 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 Helios Fairfax Partners are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Helios Fairfax i.e., Helios Fairfax and CT Real go up and down completely randomly.
Pair Corralation between Helios Fairfax and CT Real
Assuming the 90 days trading horizon Helios Fairfax Partners is expected to generate 3.42 times more return on investment than CT Real. However, Helios Fairfax is 3.42 times more volatile than CT Real Estate. It trades about 0.04 of its potential returns per unit of risk. CT Real Estate is currently generating about 0.06 per unit of risk. If you would invest 235.00 in Helios Fairfax Partners on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Helios Fairfax Partners or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. CT Real Estate
Performance |
| Timeline |
| Helios Fairfax Partners |
| CT Real Estate |
Helios Fairfax and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and CT Real
The main advantage of trading using opposite Helios Fairfax and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Helios Fairfax vs. Highwood Asset Management | Helios Fairfax vs. Hemisphere Energy | Helios Fairfax vs. AGF Management Limited | Helios Fairfax vs. Arbor Metals Corp |
| CT Real vs. Choice Properties Real | CT Real vs. Crombie Real Estate | CT Real vs. Granite Real Estate | CT Real vs. Allied Properties Real |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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