Correlation Between Slate Grocery and Slate Office
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Slate Office 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 Slate Office 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 Slate Office REIT, you can compare the effects of market volatilities on Slate Grocery and Slate Office 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 Slate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Slate Office.
Diversification Opportunities for Slate Grocery and Slate Office
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Slate is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT 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 Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of Slate Grocery i.e., Slate Grocery and Slate Office go up and down completely randomly.
Pair Corralation between Slate Grocery and Slate Office
Assuming the 90 days trading horizon Slate Grocery is expected to generate 2.5 times less return on investment than Slate Office. But when comparing it to its historical volatility, Slate Grocery REIT is 7.88 times less risky than Slate Office. It trades about 0.26 of its potential returns per unit of risk. Slate Office REIT is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Slate Office REIT on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Slate Office REIT or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Slate Office REIT
Performance |
| Timeline |
| Slate Grocery REIT |
| Slate Office REIT |
Slate Grocery and Slate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Slate Office
The main advantage of trading using opposite Slate Grocery and Slate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Slate Office 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 Slate Office will offset losses from the drop in Slate Office's long position.| Slate Grocery vs. True North Commercial | Slate Grocery vs. Slate Office REIT | Slate Grocery vs. Inovalis Real Estate | Slate Grocery vs. NorthWest Healthcare Properties |
| Slate Office vs. True North Commercial | Slate Office vs. BTB Real Estate | Slate Office vs. Inovalis Real Estate | Slate Office vs. Slate Grocery REIT |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |