Correlation Between Slate Grocery and CT Real
Can any of the company-specific risk be diversified away by investing in both Slate Grocery 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 Slate Grocery and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and CT Real Estate, you can compare the effects of market volatilities on Slate Grocery 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 Slate Grocery with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and CT Real.
Diversification Opportunities for Slate Grocery and CT Real
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Slate and CTRRF is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT 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 Slate Grocery 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 Grocery REIT 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 Slate Grocery i.e., Slate Grocery and CT Real go up and down completely randomly.
Pair Corralation between Slate Grocery and CT Real
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 0.24 times more return on investment than CT Real. However, Slate Grocery REIT is 4.13 times less risky than CT Real. It trades about 0.22 of its potential returns per unit of risk. CT Real Estate is currently generating about -0.07 per unit of risk. If you would invest 1,002 in Slate Grocery REIT on August 25, 2024 and sell it today you would earn a total of 58.00 from holding Slate Grocery REIT or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. CT Real Estate
Performance |
| Timeline |
| Slate Grocery REIT |
| CT Real Estate |
Slate Grocery and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and CT Real
The main advantage of trading using opposite Slate Grocery and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery 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.| Slate Grocery vs. Smart REIT | Slate Grocery vs. Phillips Edison Co | Slate Grocery vs. Simon Property Group | Slate Grocery vs. Plaza Retail REIT |
| CT Real vs. Smart REIT | CT Real vs. Phillips Edison Co | CT Real vs. Simon Property Group | CT Real vs. Plaza Retail 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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