Correlation Between Mango Capital and Smart REIT
Can any of the company-specific risk be diversified away by investing in both Mango Capital and Smart REIT 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 Mango Capital and Smart REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mango Capital and Smart REIT, you can compare the effects of market volatilities on Mango Capital and Smart REIT 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 Mango Capital with a short position of Smart REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Capital and Smart REIT.
Diversification Opportunities for Mango Capital and Smart REIT
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mango and Smart is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mango Capital and Smart REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart REIT and Mango Capital 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 Mango Capital are associated (or correlated) with Smart REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart REIT has no effect on the direction of Mango Capital i.e., Mango Capital and Smart REIT go up and down completely randomly.
Pair Corralation between Mango Capital and Smart REIT
Given the investment horizon of 90 days Mango Capital is expected to generate 0.49 times more return on investment than Smart REIT. However, Mango Capital is 2.04 times less risky than Smart REIT. It trades about 0.21 of its potential returns per unit of risk. Smart REIT is currently generating about 0.04 per unit of risk. If you would invest 535.00 in Mango Capital on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Mango Capital or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mango Capital vs. Smart REIT
Performance |
| Timeline |
| Mango Capital |
| Smart REIT |
Mango Capital and Smart REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mango Capital and Smart REIT
The main advantage of trading using opposite Mango Capital and Smart REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Capital position performs unexpectedly, Smart REIT 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 Smart REIT will offset losses from the drop in Smart REIT's long position.| Mango Capital vs. Boston Properties | Mango Capital vs. Kilroy Realty Corp | Mango Capital vs. SL Green Realty | Mango Capital vs. Vornado Realty Trust |
| Smart REIT vs. Firm Capital Property | Smart REIT vs. CT Real Estate | Smart REIT vs. Slate Grocery REIT | Smart REIT vs. Phillips Edison Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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