Correlation Between INET Leasehold and MFC Industrial
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By analyzing existing cross correlation between INET Leasehold REIT and MFC Industrial Investment, you can compare the effects of market volatilities on INET Leasehold and MFC 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 INET Leasehold with a short position of MFC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of INET Leasehold and MFC Industrial.
Diversification Opportunities for INET Leasehold and MFC Industrial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INET and MFC is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding INET Leasehold REIT and MFC Industrial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Industrial Investment and INET Leasehold 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 INET Leasehold REIT are associated (or correlated) with MFC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Industrial Investment has no effect on the direction of INET Leasehold i.e., INET Leasehold and MFC Industrial go up and down completely randomly.
Pair Corralation between INET Leasehold and MFC Industrial
Assuming the 90 days trading horizon INET Leasehold is expected to generate 10.21 times less return on investment than MFC Industrial. But when comparing it to its historical volatility, INET Leasehold REIT is 1.45 times less risky than MFC Industrial. It trades about 0.04 of its potential returns per unit of risk. MFC Industrial Investment is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 619.00 in MFC Industrial Investment on August 29, 2024 and sell it today you would earn a total of 41.00 from holding MFC Industrial Investment or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INET Leasehold REIT vs. MFC Industrial Investment
Performance |
| Timeline |
| INET Leasehold REIT |
| MFC Industrial Investment |
INET Leasehold and MFC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INET Leasehold and MFC Industrial
The main advantage of trading using opposite INET Leasehold and MFC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INET Leasehold position performs unexpectedly, MFC 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 MFC Industrial will offset losses from the drop in MFC Industrial's long position.| INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Airports of Thailand | INET Leasehold vs. Airports of Thailand |
| MFC Industrial vs. MFC Nichada Thani Property | MFC Industrial vs. LH Shopping Centers | MFC Industrial vs. MFC Strategic Storage | MFC Industrial vs. HEMARAJ INDUSTRIAL PROPERTY |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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