Correlation Between CS Real and Schroder ImmoPLUS
Can any of the company-specific risk be diversified away by investing in both CS Real and Schroder ImmoPLUS 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 CS Real and Schroder ImmoPLUS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS Real Estate and Schroder ImmoPLUS, you can compare the effects of market volatilities on CS Real and Schroder ImmoPLUS 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 CS Real with a short position of Schroder ImmoPLUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS Real and Schroder ImmoPLUS.
Diversification Opportunities for CS Real and Schroder ImmoPLUS
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SIAT and Schroder is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CS Real Estate and Schroder ImmoPLUS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schroder ImmoPLUS and CS Real 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 CS Real Estate are associated (or correlated) with Schroder ImmoPLUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schroder ImmoPLUS has no effect on the direction of CS Real i.e., CS Real and Schroder ImmoPLUS go up and down completely randomly.
Pair Corralation between CS Real and Schroder ImmoPLUS
Assuming the 90 days trading horizon CS Real Estate is expected to generate 0.85 times more return on investment than Schroder ImmoPLUS. However, CS Real Estate is 1.18 times less risky than Schroder ImmoPLUS. It trades about -0.1 of its potential returns per unit of risk. Schroder ImmoPLUS is currently generating about -0.1 per unit of risk. If you would invest 24,750 in CS Real Estate on November 8, 2024 and sell it today you would lose (650.00) from holding CS Real Estate or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS Real Estate vs. Schroder ImmoPLUS
Performance |
| Timeline |
| CS Real Estate |
| Schroder ImmoPLUS |
CS Real and Schroder ImmoPLUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS Real and Schroder ImmoPLUS
The main advantage of trading using opposite CS Real and Schroder ImmoPLUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS Real position performs unexpectedly, Schroder ImmoPLUS 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 Schroder ImmoPLUS will offset losses from the drop in Schroder ImmoPLUS's long position.| CS Real vs. SF Sustainable Property | CS Real vs. Swissinvest Real Estate | CS Real vs. CS Real Estate | CS Real vs. Procimmo Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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