Correlation Between HR Real and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both HR Real and Dream Industrial 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 HR Real and Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HR Real Estate and Dream Industrial Real, you can compare the effects of market volatilities on HR Real and Dream Industrial 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 HR Real with a short position of Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HR Real and Dream Industrial.
Diversification Opportunities for HR Real and Dream Industrial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HR-UN and Dream is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HR Real Estate and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real and HR 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 HR Real Estate are associated (or correlated) with Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of HR Real i.e., HR Real and Dream Industrial go up and down completely randomly.
Pair Corralation between HR Real and Dream Industrial
Assuming the 90 days trading horizon HR Real Estate is expected to generate 0.92 times more return on investment than Dream Industrial. However, HR Real Estate is 1.08 times less risky than Dream Industrial. It trades about 0.34 of its potential returns per unit of risk. Dream Industrial Real is currently generating about 0.19 per unit of risk. If you would invest 932.00 in HR Real Estate on December 4, 2024 and sell it today you would earn a total of 78.00 from holding HR Real Estate or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HR Real Estate vs. Dream Industrial Real
Performance |
| Timeline |
| HR Real Estate |
| Dream Industrial Real |
HR Real and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HR Real and Dream Industrial
The main advantage of trading using opposite HR Real and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HR Real position performs unexpectedly, Dream Industrial 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 Industrial will offset losses from the drop in Dream Industrial's long position.| HR Real vs. RioCan Real Estate | HR Real vs. Canadian Apartment Properties | HR Real vs. SmartCentres Real Estate | HR Real vs. Allied Properties Real |
| Dream Industrial vs. Granite Real Estate | Dream Industrial vs. NorthWest Healthcare Properties | Dream Industrial vs. Choice Properties Real | Dream Industrial vs. Canadian Apartment Properties |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |