Correlation Between Leisure Fund and Commonwealth Real
Can any of the company-specific risk be diversified away by investing in both Leisure Fund and Commonwealth 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 Leisure Fund and Commonwealth Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leisure Fund Class and Commonwealth Real Estate, you can compare the effects of market volatilities on Leisure Fund and Commonwealth 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 Leisure Fund with a short position of Commonwealth Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leisure Fund and Commonwealth Real.
Diversification Opportunities for Leisure Fund and Commonwealth Real
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leisure and Commonwealth is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Leisure Fund Class and Commonwealth Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Real Estate and Leisure Fund 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 Leisure Fund Class are associated (or correlated) with Commonwealth Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Real Estate has no effect on the direction of Leisure Fund i.e., Leisure Fund and Commonwealth Real go up and down completely randomly.
Pair Corralation between Leisure Fund and Commonwealth Real
Assuming the 90 days horizon Leisure Fund Class is expected to generate 0.82 times more return on investment than Commonwealth Real. However, Leisure Fund Class is 1.22 times less risky than Commonwealth Real. It trades about 0.2 of its potential returns per unit of risk. Commonwealth Real Estate is currently generating about 0.08 per unit of risk. If you would invest 8,266 in Leisure Fund Class on November 3, 2024 and sell it today you would earn a total of 261.00 from holding Leisure Fund Class or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leisure Fund Class vs. Commonwealth Real Estate
Performance |
| Timeline |
| Leisure Fund Class |
| Commonwealth Real Estate |
Leisure Fund and Commonwealth Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leisure Fund and Commonwealth Real
The main advantage of trading using opposite Leisure Fund and Commonwealth Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leisure Fund position performs unexpectedly, Commonwealth 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 Commonwealth Real will offset losses from the drop in Commonwealth Real's long position.| Leisure Fund vs. International Paper | Leisure Fund vs. O I Glass | Leisure Fund vs. Smurfit WestRock plc | Leisure Fund vs. Driven Brands Holdings |
| Commonwealth Real vs. Commonwealth Global Fund | Commonwealth Real vs. Commonwealth Australianew Zealand | Commonwealth Real vs. Amg Managers Centersquare | Commonwealth Real vs. Commonwealth Japan Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |