Correlation Between Plaza Retail and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both Plaza Retail and Jamieson Wellness 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 Plaza Retail and Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Jamieson Wellness, you can compare the effects of market volatilities on Plaza Retail and Jamieson Wellness 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 Plaza Retail with a short position of Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Jamieson Wellness.
Diversification Opportunities for Plaza Retail and Jamieson Wellness
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Plaza and Jamieson is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and Plaza Retail 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 Plaza Retail REIT are associated (or correlated) with Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Plaza Retail i.e., Plaza Retail and Jamieson Wellness go up and down completely randomly.
Pair Corralation between Plaza Retail and Jamieson Wellness
Assuming the 90 days trading horizon Plaza Retail is expected to generate 352.92 times less return on investment than Jamieson Wellness. But when comparing it to its historical volatility, Plaza Retail REIT is 3.65 times less risky than Jamieson Wellness. It trades about 0.0 of its potential returns per unit of risk. Jamieson Wellness is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,317 in Jamieson Wellness on September 1, 2024 and sell it today you would earn a total of 311.00 from holding Jamieson Wellness or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. Jamieson Wellness
Performance |
| Timeline |
| Plaza Retail REIT |
| Jamieson Wellness |
Plaza Retail and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Jamieson Wellness
The main advantage of trading using opposite Plaza Retail and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.| Plaza Retail vs. Slate Office REIT | Plaza Retail vs. Automotive Properties Real | Plaza Retail vs. BTB Real Estate | Plaza Retail vs. CT Real Estate |
| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |