Correlation Between HR Real and Medalist Diversified
Can any of the company-specific risk be diversified away by investing in both HR Real and Medalist Diversified 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 Medalist Diversified 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 Medalist Diversified Reit, you can compare the effects of market volatilities on HR Real and Medalist Diversified 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 Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of HR Real and Medalist Diversified.
Diversification Opportunities for HR Real and Medalist Diversified
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HRUFF and Medalist is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HR Real Estate and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit 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 Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of HR Real i.e., HR Real and Medalist Diversified go up and down completely randomly.
Pair Corralation between HR Real and Medalist Diversified
Assuming the 90 days horizon HR Real Estate is expected to under-perform the Medalist Diversified. In addition to that, HR Real is 2.11 times more volatile than Medalist Diversified Reit. It trades about -0.12 of its total potential returns per unit of risk. Medalist Diversified Reit is currently generating about 0.01 per unit of volatility. If you would invest 1,229 in Medalist Diversified Reit on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Medalist Diversified Reit or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HR Real Estate vs. Medalist Diversified Reit
Performance |
| Timeline |
| HR Real Estate |
| Medalist Diversified Reit |
HR Real and Medalist Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HR Real and Medalist Diversified
The main advantage of trading using opposite HR Real and Medalist Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HR Real position performs unexpectedly, Medalist Diversified 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 Medalist Diversified will offset losses from the drop in Medalist Diversified's long position.| HR Real vs. Generationome Properties | HR Real vs. Modiv Inc | HR Real vs. Broadstone Net Lease | HR Real vs. Gladstone Commercial |
| Medalist Diversified vs. Modiv Inc | Medalist Diversified vs. Presidio Property Trust | Medalist Diversified vs. Gladstone Commercial | Medalist Diversified vs. Generationome 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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