Correlation Between MFC Industrial and INET Leasehold
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By analyzing existing cross correlation between MFC Industrial Investment and INET Leasehold REIT, you can compare the effects of market volatilities on MFC Industrial and INET Leasehold 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 MFC Industrial with a short position of INET Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Industrial and INET Leasehold.
Diversification Opportunities for MFC Industrial and INET Leasehold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFC and INET is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MFC Industrial Investment and INET Leasehold REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INET Leasehold REIT and MFC Industrial 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 MFC Industrial Investment are associated (or correlated) with INET Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INET Leasehold REIT has no effect on the direction of MFC Industrial i.e., MFC Industrial and INET Leasehold go up and down completely randomly.
Pair Corralation between MFC Industrial and INET Leasehold
Assuming the 90 days trading horizon MFC Industrial Investment is expected to generate 1.45 times more return on investment than INET Leasehold. However, MFC Industrial is 1.45 times more volatile than INET Leasehold REIT. It trades about 0.29 of its potential returns per unit of risk. INET Leasehold REIT is currently generating about 0.04 per unit of risk. 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 |
MFC Industrial Investment vs. INET Leasehold REIT
Performance |
| Timeline |
| MFC Industrial Investment |
| INET Leasehold REIT |
MFC Industrial and INET Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFC Industrial and INET Leasehold
The main advantage of trading using opposite MFC Industrial and INET Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFC Industrial position performs unexpectedly, INET Leasehold 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 INET Leasehold will offset losses from the drop in INET Leasehold's long position.| 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 |
| INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Airports of Thailand | INET Leasehold vs. Airports of Thailand |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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