Correlation Between Slate Grocery and Bce
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Bce 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 Bce 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 Bce Inc Pref, you can compare the effects of market volatilities on Slate Grocery and Bce 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 Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Bce.
Diversification Opportunities for Slate Grocery and Bce
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Slate and Bce is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref 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 Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Slate Grocery i.e., Slate Grocery and Bce go up and down completely randomly.
Pair Corralation between Slate Grocery and Bce
Assuming the 90 days trading horizon Slate Grocery is expected to generate 1.91 times less return on investment than Bce. In addition to that, Slate Grocery is 1.75 times more volatile than Bce Inc Pref. It trades about 0.12 of its total potential returns per unit of risk. Bce Inc Pref is currently generating about 0.4 per unit of volatility. If you would invest 1,638 in Bce Inc Pref on November 3, 2024 and sell it today you would earn a total of 103.00 from holding Bce Inc Pref or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Bce Inc Pref
Performance |
| Timeline |
| Slate Grocery REIT |
| Bce Inc Pref |
Slate Grocery and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Bce
The main advantage of trading using opposite Slate Grocery and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| Slate Grocery vs. Aya Gold Silver | Slate Grocery vs. Capstone Mining Corp | Slate Grocery vs. Globex Mining Enterprises | Slate Grocery vs. Precision Drilling |
| Bce vs. Brookfield Investments | Bce vs. Canaf Investments | Bce vs. Farstarcap Investment Corp | Bce vs. Nicola Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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