Correlation Between Morguard Real and GDI Integrated
Can any of the company-specific risk be diversified away by investing in both Morguard Real and GDI Integrated 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 Morguard Real and GDI Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morguard Real Estate and GDI Integrated, you can compare the effects of market volatilities on Morguard Real and GDI Integrated 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 Morguard Real with a short position of GDI Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morguard Real and GDI Integrated.
Diversification Opportunities for Morguard Real and GDI Integrated
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Morguard and GDI is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Morguard Real Estate and GDI Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Integrated and Morguard Real 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 Morguard Real Estate are associated (or correlated) with GDI Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Integrated has no effect on the direction of Morguard Real i.e., Morguard Real and GDI Integrated go up and down completely randomly.
Pair Corralation between Morguard Real and GDI Integrated
Assuming the 90 days trading horizon Morguard Real Estate is expected to generate 0.63 times more return on investment than GDI Integrated. However, Morguard Real Estate is 1.58 times less risky than GDI Integrated. It trades about 0.03 of its potential returns per unit of risk. GDI Integrated is currently generating about -0.02 per unit of risk. If you would invest 497.00 in Morguard Real Estate on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Morguard Real Estate or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Morguard Real Estate vs. GDI Integrated
Performance |
| Timeline |
| Morguard Real Estate |
| GDI Integrated |
Morguard Real and GDI Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morguard Real and GDI Integrated
The main advantage of trading using opposite Morguard Real and GDI Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morguard Real position performs unexpectedly, GDI Integrated 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 GDI Integrated will offset losses from the drop in GDI Integrated's long position.| Morguard Real vs. Morguard North American | Morguard Real vs. Crombie Real Estate | Morguard Real vs. Artis Real Estate | Morguard Real vs. Slate Office REIT |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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