Correlation Between Greenland Resources and SmartCentres Real
Can any of the company-specific risk be diversified away by investing in both Greenland Resources and SmartCentres 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 Greenland Resources and SmartCentres Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenland Resources and SmartCentres Real Estate, you can compare the effects of market volatilities on Greenland Resources and SmartCentres 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 Greenland Resources with a short position of SmartCentres Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Resources and SmartCentres Real.
Diversification Opportunities for Greenland Resources and SmartCentres Real
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenland and SmartCentres is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Resources and SmartCentres Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartCentres Real Estate and Greenland Resources 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 Greenland Resources are associated (or correlated) with SmartCentres Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartCentres Real Estate has no effect on the direction of Greenland Resources i.e., Greenland Resources and SmartCentres Real go up and down completely randomly.
Pair Corralation between Greenland Resources and SmartCentres Real
Assuming the 90 days trading horizon Greenland Resources is expected to generate 5.28 times more return on investment than SmartCentres Real. However, Greenland Resources is 5.28 times more volatile than SmartCentres Real Estate. It trades about 0.06 of its potential returns per unit of risk. SmartCentres Real Estate is currently generating about 0.03 per unit of risk. If you would invest 62.00 in Greenland Resources on November 2, 2024 and sell it today you would earn a total of 31.00 from holding Greenland Resources or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenland Resources vs. SmartCentres Real Estate
Performance |
| Timeline |
| Greenland Resources |
| SmartCentres Real Estate |
Greenland Resources and SmartCentres Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Resources and SmartCentres Real
The main advantage of trading using opposite Greenland Resources and SmartCentres Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Resources position performs unexpectedly, SmartCentres 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 SmartCentres Real will offset losses from the drop in SmartCentres Real's long position.| Greenland Resources vs. Postmedia Network Canada | Greenland Resources vs. Verizon Communications CDR | Greenland Resources vs. DIRTT Environmental Solutions | Greenland Resources vs. Labrador Iron Ore |
| SmartCentres Real vs. RioCan Real Estate | SmartCentres Real vs. NorthWest Healthcare Properties | SmartCentres Real vs. HR Real Estate | SmartCentres Real vs. Choice 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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