Correlation Between Nexus Real and Gulf Pacific
Can any of the company-specific risk be diversified away by investing in both Nexus Real and Gulf Pacific 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 Nexus Real and Gulf Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexus Real Estate and Gulf Pacific Equities, you can compare the effects of market volatilities on Nexus Real and Gulf Pacific 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 Nexus Real with a short position of Gulf Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexus Real and Gulf Pacific.
Diversification Opportunities for Nexus Real and Gulf Pacific
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexus and Gulf is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nexus Real Estate and Gulf Pacific Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Pacific Equities and Nexus 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 Nexus Real Estate are associated (or correlated) with Gulf Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Pacific Equities has no effect on the direction of Nexus Real i.e., Nexus Real and Gulf Pacific go up and down completely randomly.
Pair Corralation between Nexus Real and Gulf Pacific
Assuming the 90 days trading horizon Nexus Real Estate is expected to under-perform the Gulf Pacific. But the stock apears to be less risky and, when comparing its historical volatility, Nexus Real Estate is 1.34 times less risky than Gulf Pacific. The stock trades about -0.17 of its potential returns per unit of risk. The Gulf Pacific Equities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Gulf Pacific Equities on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Gulf Pacific Equities or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexus Real Estate vs. Gulf Pacific Equities
Performance |
| Timeline |
| Nexus Real Estate |
| Gulf Pacific Equities |
Nexus Real and Gulf Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexus Real and Gulf Pacific
The main advantage of trading using opposite Nexus Real and Gulf Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexus Real position performs unexpectedly, Gulf Pacific 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 Gulf Pacific will offset losses from the drop in Gulf Pacific's long position.| Nexus Real vs. Slate Grocery REIT | Nexus Real vs. Pro Real Estate | Nexus Real vs. True North Commercial | Nexus Real vs. Inovalis Real Estate |
| Gulf Pacific vs. SmartCentres Real Estate | Gulf Pacific vs. Dream Industrial Real | Gulf Pacific vs. RioCan Real Estate | Gulf Pacific vs. Algonquin Power Utilities |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |