Correlation Between Killam Apartment and BSR Real
Can any of the company-specific risk be diversified away by investing in both Killam Apartment and BSR 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 BSR 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 BSR Real Estate, you can compare the effects of market volatilities on Killam Apartment and BSR 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 BSR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Killam Apartment and BSR Real.
Diversification Opportunities for Killam Apartment and BSR Real
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Killam and BSR is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and BSR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSR 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 BSR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSR Real Estate has no effect on the direction of Killam Apartment i.e., Killam Apartment and BSR Real go up and down completely randomly.
Pair Corralation between Killam Apartment and BSR Real
Assuming the 90 days trading horizon Killam Apartment Real is expected to generate 0.7 times more return on investment than BSR Real. However, Killam Apartment Real is 1.44 times less risky than BSR Real. It trades about -0.09 of its potential returns per unit of risk. BSR Real Estate is currently generating about -0.11 per unit of risk. If you would invest 1,700 in Killam Apartment Real on November 9, 2024 and sell it today you would lose (36.00) from holding Killam Apartment Real or give up 2.12% 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. BSR Real Estate
Performance |
| Timeline |
| Killam Apartment Real |
| BSR Real Estate |
Killam Apartment and BSR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Killam Apartment and BSR Real
The main advantage of trading using opposite Killam Apartment and BSR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Killam Apartment position performs unexpectedly, BSR 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 BSR Real will offset losses from the drop in BSR 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 |
| BSR Real vs. European Residential Real | BSR Real vs. Minto Apartment Real | BSR Real vs. BSR Real Estate | BSR Real 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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