Correlation Between Impact Growth and Land
Can any of the company-specific risk be diversified away by investing in both Impact Growth and Land 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 Impact Growth and Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impact Growth REIT and Land and Houses, you can compare the effects of market volatilities on Impact Growth and Land 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 Impact Growth with a short position of Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impact Growth and Land.
Diversification Opportunities for Impact Growth and Land
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impact and Land is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Impact Growth REIT and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses and Impact Growth 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 Impact Growth REIT are associated (or correlated) with Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Impact Growth i.e., Impact Growth and Land go up and down completely randomly.
Pair Corralation between Impact Growth and Land
Assuming the 90 days trading horizon Impact Growth REIT is expected to under-perform the Land. But the stock apears to be less risky and, when comparing its historical volatility, Impact Growth REIT is 1.02 times less risky than Land. The stock trades about -0.13 of its potential returns per unit of risk. The Land and Houses is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Land and Houses on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Land and Houses or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Impact Growth REIT vs. Land and Houses
Performance |
| Timeline |
| Impact Growth REIT |
| Land and Houses |
Impact Growth and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impact Growth and Land
The main advantage of trading using opposite Impact Growth and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impact Growth position performs unexpectedly, Land 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 Land will offset losses from the drop in Land's long position.| Impact Growth vs. CPN Retail Growth | Impact Growth vs. WHA Premium Growth | Impact Growth vs. Golden Ventures Leasehold | Impact Growth vs. LH Shopping Centers |
| Land vs. Quality Houses Hotel | Land vs. Major Cineplex Lifestyle | Land vs. Quality Houses Property | Land vs. LH Shopping Centers |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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