Correlation Between RioCan Real and Canadian Net
Can any of the company-specific risk be diversified away by investing in both RioCan Real and Canadian Net 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 RioCan Real and Canadian Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RioCan Real Estate and Canadian Net Real, you can compare the effects of market volatilities on RioCan Real and Canadian Net 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 RioCan Real with a short position of Canadian Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of RioCan Real and Canadian Net.
Diversification Opportunities for RioCan Real and Canadian Net
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RioCan and Canadian is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding RioCan Real Estate and Canadian Net Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Net Real and RioCan 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 RioCan Real Estate are associated (or correlated) with Canadian Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Net Real has no effect on the direction of RioCan Real i.e., RioCan Real and Canadian Net go up and down completely randomly.
Pair Corralation between RioCan Real and Canadian Net
Assuming the 90 days trading horizon RioCan Real Estate is expected to generate 0.89 times more return on investment than Canadian Net. However, RioCan Real Estate is 1.12 times less risky than Canadian Net. It trades about 0.08 of its potential returns per unit of risk. Canadian Net Real is currently generating about 0.07 per unit of risk. If you would invest 1,705 in RioCan Real Estate on September 1, 2024 and sell it today you would earn a total of 196.00 from holding RioCan Real Estate or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RioCan Real Estate vs. Canadian Net Real
Performance |
| Timeline |
| RioCan Real Estate |
| Canadian Net Real |
RioCan Real and Canadian Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RioCan Real and Canadian Net
The main advantage of trading using opposite RioCan Real and Canadian Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RioCan Real position performs unexpectedly, Canadian Net 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 Canadian Net will offset losses from the drop in Canadian Net's long position.| RioCan Real vs. SmartCentres Real Estate | RioCan Real vs. HR Real Estate | RioCan Real vs. Fortis Inc | RioCan Real vs. Enbridge |
| Canadian Net vs. Dream Industrial Real | Canadian Net vs. RioCan Real Estate | Canadian Net vs. Algonquin Power Utilities | Canadian Net vs. iShares Canadian HYBrid |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |