Correlation Between Slate Grocery and BOEING CDR
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and BOEING CDR 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 Slate Grocery and BOEING CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and BOEING CDR, you can compare the effects of market volatilities on Slate Grocery and BOEING CDR 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 Slate Grocery with a short position of BOEING CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and BOEING CDR.
Diversification Opportunities for Slate Grocery and BOEING CDR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and BOEING is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and BOEING CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CDR and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with BOEING CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CDR has no effect on the direction of Slate Grocery i.e., Slate Grocery and BOEING CDR go up and down completely randomly.
Pair Corralation between Slate Grocery and BOEING CDR
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 0.43 times more return on investment than BOEING CDR. However, Slate Grocery REIT is 2.34 times less risky than BOEING CDR. It trades about -0.41 of its potential returns per unit of risk. BOEING CDR is currently generating about -0.19 per unit of risk. If you would invest 960.00 in Slate Grocery REIT on October 22, 2024 and sell it today you would lose (36.00) from holding Slate Grocery REIT or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. BOEING CDR
Performance |
| Timeline |
| Slate Grocery REIT |
| BOEING CDR |
Slate Grocery and BOEING CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and BOEING CDR
The main advantage of trading using opposite Slate Grocery and BOEING CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, BOEING CDR 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 BOEING CDR will offset losses from the drop in BOEING CDR's long position.| Slate Grocery vs. Northstar Clean Technologies | Slate Grocery vs. Datable Technology Corp | Slate Grocery vs. Quorum Information Technologies | Slate Grocery vs. SPoT Coffee |
| BOEING CDR vs. MAG Silver Corp | BOEING CDR vs. Slate Grocery REIT | BOEING CDR vs. SPoT Coffee | BOEING CDR vs. Capstone Mining Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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