Correlation Between Killam Apartment and CT Real
Can any of the company-specific risk be diversified away by investing in both Killam Apartment and CT Real 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 Killam Apartment and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Killam Apartment Real and CT Real Estate, you can compare the effects of market volatilities on Killam Apartment and CT Real 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 Killam Apartment with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Killam Apartment and CT Real.
Diversification Opportunities for Killam Apartment and CT Real
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Killam and CRT-UN is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Killam Apartment 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 Killam Apartment Real are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Killam Apartment i.e., Killam Apartment and CT Real go up and down completely randomly.
Pair Corralation between Killam Apartment and CT Real
Assuming the 90 days trading horizon Killam Apartment Real is expected to under-perform the CT Real. In addition to that, Killam Apartment is 1.2 times more volatile than CT Real Estate. It trades about -0.31 of its total potential returns per unit of risk. CT Real Estate is currently generating about -0.11 per unit of volatility. If you would invest 1,543 in CT Real Estate on August 29, 2024 and sell it today you would lose (33.00) from holding CT Real Estate or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Killam Apartment Real vs. CT Real Estate
Performance |
| Timeline |
| Killam Apartment Real |
| CT Real Estate |
Killam Apartment and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Killam Apartment and CT Real
The main advantage of trading using opposite Killam Apartment and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Killam Apartment position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Killam Apartment vs. InterRent Real Estate | Killam Apartment vs. Canadian Apartment Properties | Killam Apartment vs. Granite Real Estate | Killam Apartment vs. Crombie Real Estate |
| CT Real vs. Choice Properties Real | CT Real vs. Crombie Real Estate | CT Real vs. Granite Real Estate | CT Real vs. Allied Properties Real |
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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