Correlation Between Plaza Retail and Kingsmen Resources
Can any of the company-specific risk be diversified away by investing in both Plaza Retail and Kingsmen Resources 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 Kingsmen Resources 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 Kingsmen Resources, you can compare the effects of market volatilities on Plaza Retail and Kingsmen Resources 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 Kingsmen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Kingsmen Resources.
Diversification Opportunities for Plaza Retail and Kingsmen Resources
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plaza and Kingsmen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Kingsmen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen Resources 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 Kingsmen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen Resources has no effect on the direction of Plaza Retail i.e., Plaza Retail and Kingsmen Resources go up and down completely randomly.
Pair Corralation between Plaza Retail and Kingsmen Resources
Assuming the 90 days trading horizon Plaza Retail is expected to generate 1300.92 times less return on investment than Kingsmen Resources. But when comparing it to its historical volatility, Plaza Retail REIT is 16.85 times less risky than Kingsmen Resources. It trades about 0.0 of its potential returns per unit of risk. Kingsmen Resources is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Kingsmen Resources on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Kingsmen Resources or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. Kingsmen Resources
Performance |
| Timeline |
| Plaza Retail REIT |
| Kingsmen Resources |
Plaza Retail and Kingsmen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Kingsmen Resources
The main advantage of trading using opposite Plaza Retail and Kingsmen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail position performs unexpectedly, Kingsmen Resources 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 Kingsmen Resources will offset losses from the drop in Kingsmen Resources' 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 |
| Kingsmen Resources vs. Primaris Retail RE | Kingsmen Resources vs. Westshore Terminals Investment | Kingsmen Resources vs. Plaza Retail REIT | Kingsmen Resources vs. CNJ Capital Investments |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |