Correlation Between Sila Realty and Extendicare
Can any of the company-specific risk be diversified away by investing in both Sila Realty and Extendicare 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 Sila Realty and Extendicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sila Realty Trust, and Extendicare, you can compare the effects of market volatilities on Sila Realty and Extendicare 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 Sila Realty with a short position of Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sila Realty and Extendicare.
Diversification Opportunities for Sila Realty and Extendicare
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sila and Extendicare is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sila Realty Trust, and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and Sila Realty 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 Sila Realty Trust, are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of Sila Realty i.e., Sila Realty and Extendicare go up and down completely randomly.
Pair Corralation between Sila Realty and Extendicare
If you would invest 0.03 in Sila Realty Trust, on August 27, 2024 and sell it today you would earn a total of 2,520 from holding Sila Realty Trust, or generate 8399900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.66% |
| Values | Daily Returns |
Sila Realty Trust, vs. Extendicare
Performance |
| Timeline |
| Sila Realty Trust, |
| Extendicare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sila Realty and Extendicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sila Realty and Extendicare
The main advantage of trading using opposite Sila Realty and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sila Realty position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.| Sila Realty vs. Sea | Sila Realty vs. Maiden Holdings | Sila Realty vs. Pekin Life Insurance | Sila Realty vs. Upper Street Marketing |
| Extendicare vs. Ramsay Health Care | Extendicare vs. Jack Nathan Medical | Extendicare vs. Nova Leap Health | Extendicare vs. Fresenius SE Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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