Correlation Between Aew Real and Global Real
Can any of the company-specific risk be diversified away by investing in both Aew Real and Global 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 Aew Real and Global Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aew Real Estate and Global Real Estate, you can compare the effects of market volatilities on Aew Real and Global 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 Aew Real with a short position of Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and Global Real.
Diversification Opportunities for Aew Real and Global Real
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aew and Global is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate and Aew 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 Aew Real Estate are associated (or correlated) with Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of Aew Real i.e., Aew Real and Global Real go up and down completely randomly.
Pair Corralation between Aew Real and Global Real
If you would invest 457.00 in Global Real Estate on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Global Real Estate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Aew Real Estate vs. Global Real Estate
Performance |
| Timeline |
| Aew Real Estate |
| Global Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aew Real and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and Global Real
The main advantage of trading using opposite Aew Real and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real position performs unexpectedly, Global 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 Global Real will offset losses from the drop in Global Real's long position.| Aew Real vs. Payden Government Fund | Aew Real vs. Us Government Securities | Aew Real vs. Dws Government Money | Aew Real vs. Hsbc Government Money |
| Global Real vs. Emerging Markets Equity | Global Real vs. Global Fixed Income | Global Real vs. Global Fixed Income | Global Real vs. Global Fixed Income |
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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