Correlation Between Plaza Retail and RTG Mining
Can any of the company-specific risk be diversified away by investing in both Plaza Retail and RTG Mining 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 RTG Mining 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 RTG Mining, you can compare the effects of market volatilities on Plaza Retail and RTG Mining 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 RTG Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and RTG Mining.
Diversification Opportunities for Plaza Retail and RTG Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Plaza and RTG is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and RTG Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTG Mining 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 RTG Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTG Mining has no effect on the direction of Plaza Retail i.e., Plaza Retail and RTG Mining go up and down completely randomly.
Pair Corralation between Plaza Retail and RTG Mining
Assuming the 90 days trading horizon Plaza Retail is expected to generate 1726.0 times less return on investment than RTG Mining. But when comparing it to its historical volatility, Plaza Retail REIT is 8.79 times less risky than RTG Mining. It trades about 0.0 of its potential returns per unit of risk. RTG Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4.00 in RTG Mining on August 26, 2024 and sell it today you would lose (1.00) from holding RTG Mining or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. RTG Mining
Performance |
| Timeline |
| Plaza Retail REIT |
| RTG Mining |
Plaza Retail and RTG Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and RTG Mining
The main advantage of trading using opposite Plaza Retail and RTG Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail position performs unexpectedly, RTG Mining 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 RTG Mining will offset losses from the drop in RTG Mining's 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 |
| RTG Mining vs. Capstone Mining Corp | RTG Mining vs. Plaza Retail REIT | RTG Mining vs. Xtract One Technologies | RTG Mining vs. Monument Mining Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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