Correlation Between SF Sustainable and Swissinvest Real
Can any of the company-specific risk be diversified away by investing in both SF Sustainable and Swissinvest 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 SF Sustainable and Swissinvest Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SF Sustainable Property and Swissinvest Real Estate, you can compare the effects of market volatilities on SF Sustainable and Swissinvest 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 SF Sustainable with a short position of Swissinvest Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of SF Sustainable and Swissinvest Real.
Diversification Opportunities for SF Sustainable and Swissinvest Real
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SFPF and Swissinvest is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SF Sustainable Property and Swissinvest Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissinvest Real Estate and SF Sustainable 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 SF Sustainable Property are associated (or correlated) with Swissinvest Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissinvest Real Estate has no effect on the direction of SF Sustainable i.e., SF Sustainable and Swissinvest Real go up and down completely randomly.
Pair Corralation between SF Sustainable and Swissinvest Real
Assuming the 90 days trading horizon SF Sustainable is expected to generate 1.32 times less return on investment than Swissinvest Real. But when comparing it to its historical volatility, SF Sustainable Property is 1.05 times less risky than Swissinvest Real. It trades about 0.07 of its potential returns per unit of risk. Swissinvest Real Estate is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20,500 in Swissinvest Real Estate on October 30, 2024 and sell it today you would earn a total of 1,000.00 from holding Swissinvest Real Estate or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SF Sustainable Property vs. Swissinvest Real Estate
Performance |
| Timeline |
| SF Sustainable Property |
| Swissinvest Real Estate |
SF Sustainable and Swissinvest Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SF Sustainable and Swissinvest Real
The main advantage of trading using opposite SF Sustainable and Swissinvest Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SF Sustainable position performs unexpectedly, Swissinvest 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 Swissinvest Real will offset losses from the drop in Swissinvest Real's long position.| SF Sustainable vs. Procimmo Real Estate | SF Sustainable vs. SPDR Dow Jones | SF Sustainable vs. Baloise Holding AG | SF Sustainable vs. Autoneum Holding AG |
| Swissinvest Real vs. SF Sustainable Property | Swissinvest Real vs. CS Real Estate | Swissinvest Real vs. Procimmo Real Estate | Swissinvest Real vs. UBS Property |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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