Correlation Between Killam Apartment and European Residential
Can any of the company-specific risk be diversified away by investing in both Killam Apartment and European Residential 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 European Residential 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 European Residential Real, you can compare the effects of market volatilities on Killam Apartment and European Residential 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 European Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Killam Apartment and European Residential.
Diversification Opportunities for Killam Apartment and European Residential
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Killam and European is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and European Residential Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Residential Real 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 European Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Residential Real has no effect on the direction of Killam Apartment i.e., Killam Apartment and European Residential go up and down completely randomly.
Pair Corralation between Killam Apartment and European Residential
Assuming the 90 days trading horizon Killam Apartment Real is expected to generate 0.48 times more return on investment than European Residential. However, Killam Apartment Real is 2.1 times less risky than European Residential. It trades about 0.0 of its potential returns per unit of risk. European Residential Real is currently generating about -0.01 per unit of risk. If you would invest 1,745 in Killam Apartment Real on November 9, 2024 and sell it today you would lose (81.00) from holding Killam Apartment Real or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Killam Apartment Real vs. European Residential Real
Performance |
| Timeline |
| Killam Apartment Real |
| European Residential Real |
Killam Apartment and European Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Killam Apartment and European Residential
The main advantage of trading using opposite Killam Apartment and European Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Killam Apartment position performs unexpectedly, European Residential 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 European Residential will offset losses from the drop in European Residential'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 |
| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |