Correlation Between Riocan REIT and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Riocan REIT and Slate Grocery 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 REIT and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Riocan REIT and Slate Grocery REIT, you can compare the effects of market volatilities on Riocan REIT and Slate Grocery 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 REIT with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Riocan REIT and Slate Grocery.
Diversification Opportunities for Riocan REIT and Slate Grocery
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Riocan and Slate is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Riocan REIT and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Riocan 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 Riocan REIT are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Riocan REIT i.e., Riocan REIT and Slate Grocery go up and down completely randomly.
Pair Corralation between Riocan REIT and Slate Grocery
Assuming the 90 days horizon Riocan REIT is expected to under-perform the Slate Grocery. In addition to that, Riocan REIT is 1.12 times more volatile than Slate Grocery REIT. It trades about -0.01 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.16 per unit of volatility. If you would invest 914.00 in Slate Grocery REIT on August 28, 2024 and sell it today you would earn a total of 122.00 from holding Slate Grocery REIT or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Riocan REIT vs. Slate Grocery REIT
Performance |
| Timeline |
| Riocan REIT |
| Slate Grocery REIT |
Riocan REIT and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Riocan REIT and Slate Grocery
The main advantage of trading using opposite Riocan REIT and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riocan REIT position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Riocan REIT vs. Choice Properties Real | Riocan REIT vs. CT Real Estate | Riocan REIT vs. Firm Capital Property | Riocan REIT vs. Slate Grocery REIT |
| Slate Grocery vs. Choice Properties Real | Slate Grocery vs. CT Real Estate | Slate Grocery vs. Firm Capital Property | Slate Grocery vs. Riocan REIT |
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.
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