Correlation Between Slate Grocery and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness, you can compare the effects of market volatilities on Slate Grocery and Jamieson Wellness 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 Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Jamieson Wellness.
Diversification Opportunities for Slate Grocery and Jamieson Wellness
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Slate and Jamieson is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness 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 Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Slate Grocery i.e., Slate Grocery and Jamieson Wellness go up and down completely randomly.
Pair Corralation between Slate Grocery and Jamieson Wellness
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 1.02 times more return on investment than Jamieson Wellness. However, Slate Grocery is 1.02 times more volatile than Jamieson Wellness. It trades about 0.02 of its potential returns per unit of risk. Jamieson Wellness is currently generating about 0.02 per unit of risk. If you would invest 996.00 in Slate Grocery REIT on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Slate Grocery REIT or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Jamieson Wellness
Performance |
| Timeline |
| Slate Grocery REIT |
| Jamieson Wellness |
Slate Grocery and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Jamieson Wellness
The main advantage of trading using opposite Slate Grocery and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.| Slate Grocery vs. Primaris Retail RE | Slate Grocery vs. High Liner Foods | Slate Grocery vs. Canadian General Investments | Slate Grocery vs. Western Investment |
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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 Stocks Directory module to find actively traded stocks across global markets.
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