Correlation Between Mapletree Commercial and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Mapletree Commercial and Slate Grocery 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 Mapletree Commercial and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Commercial Trust and Slate Grocery REIT, you can compare the effects of market volatilities on Mapletree Commercial and Slate Grocery 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 Mapletree Commercial with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Commercial and Slate Grocery.
Diversification Opportunities for Mapletree Commercial and Slate Grocery
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mapletree and Slate is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Commercial Trust and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Mapletree Commercial 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 Mapletree Commercial Trust are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Mapletree Commercial i.e., Mapletree Commercial and Slate Grocery go up and down completely randomly.
Pair Corralation between Mapletree Commercial and Slate Grocery
Assuming the 90 days horizon Mapletree Commercial is expected to generate 3.68 times less return on investment than Slate Grocery. In addition to that, Mapletree Commercial is 1.65 times more volatile than Slate Grocery REIT. It trades about 0.02 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.11 per unit of volatility. If you would invest 698.00 in Slate Grocery REIT on September 14, 2024 and sell it today you would earn a total of 330.00 from holding Slate Grocery REIT or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapletree Commercial Trust vs. Slate Grocery REIT
Performance |
| Timeline |
| Mapletree Commercial |
| Slate Grocery REIT |
Mapletree Commercial and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Commercial and Slate Grocery
The main advantage of trading using opposite Mapletree Commercial and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Commercial position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
| Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Braemar Hotels Resorts | Slate Grocery vs. Braemar Hotels Resorts |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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