Correlation Between BSR Real and Dream Impact
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By analyzing existing cross correlation between BSR Real Estate and Dream Impact Trust, you can compare the effects of market volatilities on BSR Real and Dream Impact 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 BSR Real with a short position of Dream Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSR Real and Dream Impact.
Diversification Opportunities for BSR Real and Dream Impact
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BSR and Dream is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BSR Real Estate and Dream Impact Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Impact Trust and BSR Real 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 BSR Real Estate are associated (or correlated) with Dream Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Impact Trust has no effect on the direction of BSR Real i.e., BSR Real and Dream Impact go up and down completely randomly.
Pair Corralation between BSR Real and Dream Impact
Assuming the 90 days trading horizon BSR Real Estate is expected to generate 0.55 times more return on investment than Dream Impact. However, BSR Real Estate is 1.8 times less risky than Dream Impact. It trades about -0.04 of its potential returns per unit of risk. Dream Impact Trust is currently generating about -0.04 per unit of risk. If you would invest 1,683 in BSR Real Estate on November 27, 2024 and sell it today you would lose (22.00) from holding BSR Real Estate or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BSR Real Estate vs. Dream Impact Trust
Performance |
| Timeline |
| BSR Real Estate |
| Dream Impact Trust |
BSR Real and Dream Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSR Real and Dream Impact
The main advantage of trading using opposite BSR Real and Dream Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSR Real position performs unexpectedly, Dream Impact 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 Dream Impact will offset losses from the drop in Dream Impact's long position.| BSR Real vs. European Residential Real | BSR Real vs. Minto Apartment Real | BSR Real vs. BSR Real Estate | BSR Real vs. Morguard North American |
| Dream Impact vs. European Residential Real | Dream Impact vs. Pro Real Estate | Dream Impact vs. BSR Real Estate | Dream Impact vs. Morguard North American |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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