Correlation Between Slate Office and Morguard Real
Can any of the company-specific risk be diversified away by investing in both Slate Office and Morguard 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 Slate Office and Morguard Real 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 Morguard Real Estate, you can compare the effects of market volatilities on Slate Office and Morguard 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 Slate Office with a short position of Morguard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Office and Morguard Real.
Diversification Opportunities for Slate Office and Morguard Real
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Morguard is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Slate Office REIT and Morguard Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morguard Real Estate 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 Morguard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morguard Real Estate has no effect on the direction of Slate Office i.e., Slate Office and Morguard Real go up and down completely randomly.
Pair Corralation between Slate Office and Morguard Real
Assuming the 90 days trading horizon Slate Office REIT is expected to under-perform the Morguard Real. In addition to that, Slate Office is 3.24 times more volatile than Morguard Real Estate. It trades about -0.32 of its total potential returns per unit of risk. Morguard Real Estate is currently generating about -0.08 per unit of volatility. If you would invest 568.00 in Morguard Real Estate on August 29, 2024 and sell it today you would lose (15.00) from holding Morguard Real Estate or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Office REIT vs. Morguard Real Estate
Performance |
| Timeline |
| Slate Office REIT |
| Morguard Real Estate |
Slate Office and Morguard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Office and Morguard Real
The main advantage of trading using opposite Slate Office and Morguard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Office position performs unexpectedly, Morguard 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 Morguard Real will offset losses from the drop in Morguard Real's long position.| Slate Office vs. SmartCentres Real Estate | Slate Office vs. Dream Industrial Real | Slate Office vs. RioCan Real Estate | Slate Office vs. Algonquin Power Utilities |
| Morguard Real vs. Morguard North American | Morguard Real vs. Crombie Real Estate | Morguard Real vs. Artis Real Estate | Morguard Real vs. Slate Office 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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