Correlation Between Sonida Senior and CT Real
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and CT Real 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 Sonida Senior and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and CT Real Estate, you can compare the effects of market volatilities on Sonida Senior and CT Real 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 Sonida Senior with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and CT Real.
Diversification Opportunities for Sonida Senior and CT Real
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sonida and CTRRF is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Sonida Senior 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 Sonida Senior Living are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Sonida Senior i.e., Sonida Senior and CT Real go up and down completely randomly.
Pair Corralation between Sonida Senior and CT Real
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 1.55 times more return on investment than CT Real. However, Sonida Senior is 1.55 times more volatile than CT Real Estate. It trades about 0.08 of its potential returns per unit of risk. CT Real Estate is currently generating about -0.01 per unit of risk. If you would invest 951.00 in Sonida Senior Living on August 31, 2024 and sell it today you would earn a total of 1,655 from holding Sonida Senior Living or generate 174.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.47% |
| Values | Daily Returns |
Sonida Senior Living vs. CT Real Estate
Performance |
| Timeline |
| Sonida Senior Living |
| CT Real Estate |
Sonida Senior and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and CT Real
The main advantage of trading using opposite Sonida Senior and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
| CT Real vs. Boston Properties | CT Real vs. Kilroy Realty Corp | CT Real vs. SL Green Realty | CT Real vs. Vornado Realty Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |