Correlation Between Slate Grocery and Canadian Net
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Canadian Net 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 Canadian Net 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 Canadian Net Real, you can compare the effects of market volatilities on Slate Grocery and Canadian Net 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 Canadian Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Canadian Net.
Diversification Opportunities for Slate Grocery and Canadian Net
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and Canadian is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Canadian Net Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Net Real 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 Canadian Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Net Real has no effect on the direction of Slate Grocery i.e., Slate Grocery and Canadian Net go up and down completely randomly.
Pair Corralation between Slate Grocery and Canadian Net
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 1.01 times more return on investment than Canadian Net. However, Slate Grocery is 1.01 times more volatile than Canadian Net Real. It trades about 0.11 of its potential returns per unit of risk. Canadian Net Real is currently generating about 0.0 per unit of risk. If you would invest 995.00 in Slate Grocery REIT on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Slate Grocery REIT or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Canadian Net Real
Performance |
| Timeline |
| Slate Grocery REIT |
| Canadian Net Real |
Slate Grocery and Canadian Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Canadian Net
The main advantage of trading using opposite Slate Grocery and Canadian Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Canadian Net 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 Canadian Net will offset losses from the drop in Canadian Net's long position.| Slate Grocery vs. Slate Office REIT | Slate Grocery vs. Automotive Properties Real | Slate Grocery vs. BTB Real Estate | Slate Grocery vs. iShares Canadian HYBrid |
| Canadian Net vs. NeXGold Mining Corp | Canadian Net vs. First National Financial | Canadian Net vs. Fairfax Financial Holdings | Canadian Net vs. Financial 15 Split |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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