Correlation Between Slate Office and Mainstreet Equity
Can any of the company-specific risk be diversified away by investing in both Slate Office and Mainstreet Equity 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 Office and Mainstreet Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Office REIT and Mainstreet Equity Corp, you can compare the effects of market volatilities on Slate Office and Mainstreet Equity 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 Office with a short position of Mainstreet Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Office and Mainstreet Equity.
Diversification Opportunities for Slate Office and Mainstreet Equity
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Mainstreet is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Slate Office REIT and Mainstreet Equity Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstreet Equity Corp and Slate Office 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 Office REIT are associated (or correlated) with Mainstreet Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstreet Equity Corp has no effect on the direction of Slate Office i.e., Slate Office and Mainstreet Equity go up and down completely randomly.
Pair Corralation between Slate Office and Mainstreet Equity
Assuming the 90 days trading horizon Slate Office REIT is expected to under-perform the Mainstreet Equity. In addition to that, Slate Office is 6.17 times more volatile than Mainstreet Equity Corp. It trades about 0.0 of its total potential returns per unit of risk. Mainstreet Equity Corp is currently generating about 0.08 per unit of volatility. If you would invest 17,167 in Mainstreet Equity Corp on August 27, 2024 and sell it today you would earn a total of 3,184 from holding Mainstreet Equity Corp or generate 18.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Office REIT vs. Mainstreet Equity Corp
Performance |
| Timeline |
| Slate Office REIT |
| Mainstreet Equity Corp |
Slate Office and Mainstreet Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Office and Mainstreet Equity
The main advantage of trading using opposite Slate Office and Mainstreet Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Office position performs unexpectedly, Mainstreet Equity 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 Mainstreet Equity will offset losses from the drop in Mainstreet Equity's long position.| Slate Office vs. True North Commercial | Slate Office vs. BTB Real Estate | Slate Office vs. Inovalis Real Estate | Slate Office vs. Slate Grocery REIT |
| Mainstreet Equity vs. Morguard | Mainstreet Equity vs. Melcor Developments | Mainstreet Equity vs. Genesis Land Development | Mainstreet Equity vs. FirstService Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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