Correlation Between Power REIT and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Power REIT and SuRo Capital 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 Power REIT and SuRo Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power REIT and SuRo Capital Corp, you can compare the effects of market volatilities on Power REIT and SuRo Capital 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 Power REIT with a short position of SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power REIT and SuRo Capital.
Diversification Opportunities for Power REIT and SuRo Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Power and SuRo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Power REIT and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo Capital Corp and Power REIT 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 Power REIT are associated (or correlated) with SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Power REIT i.e., Power REIT and SuRo Capital go up and down completely randomly.
Pair Corralation between Power REIT and SuRo Capital
Allowing for the 90-day total investment horizon Power REIT is expected to generate 20.04 times more return on investment than SuRo Capital. However, Power REIT is 20.04 times more volatile than SuRo Capital Corp. It trades about 0.01 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.07 per unit of risk. If you would invest 518.00 in Power REIT on October 25, 2024 and sell it today you would lose (402.00) from holding Power REIT or give up 77.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power REIT vs. SuRo Capital Corp
Performance |
| Timeline |
| Power REIT |
| SuRo Capital Corp |
Power REIT and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power REIT and SuRo Capital
The main advantage of trading using opposite Power REIT and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power REIT position performs unexpectedly, SuRo Capital 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.| Power REIT vs. Newlake Capital Partners | Power REIT vs. Outfront Media | Power REIT vs. Uniti Group | Power REIT vs. Farmland Partners |
| SuRo Capital vs. Synchronoss Technologies 8375 | SuRo Capital vs. Great Elm Capital | SuRo Capital vs. Gladstone Investment | SuRo Capital vs. Harrow Health 8625 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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