Correlation Between Pender Real and Global Real
Can any of the company-specific risk be diversified away by investing in both Pender 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 Pender 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 Pender Real Estate and Global Real Estate, you can compare the effects of market volatilities on Pender 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 Pender Real with a short position of Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Global Real.
Diversification Opportunities for Pender Real and Global Real
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pender and Global is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Pender 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 Pender 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 Pender 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 Pender Real i.e., Pender Real and Global Real go up and down completely randomly.
Pair Corralation between Pender Real and Global Real
Assuming the 90 days horizon Pender Real is expected to generate 2.37 times less return on investment than Global Real. But when comparing it to its historical volatility, Pender Real Estate is 10.51 times less risky than Global Real. It trades about 0.35 of its potential returns per unit of risk. Global Real Estate is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,532 in Global Real Estate on September 19, 2024 and sell it today you would earn a total of 192.00 from holding Global Real Estate or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pender Real Estate vs. Global Real Estate
Performance |
| Timeline |
| Pender Real Estate |
| Global Real Estate |
Pender Real and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Global Real
The main advantage of trading using opposite Pender Real and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender 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.| Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard 500 Index | Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard Total Stock |
| Global Real vs. Pender Real Estate | Global Real vs. Guggenheim Risk Managed | Global Real vs. Franklin Real Estate | Global Real vs. Columbia Real Estate |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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