Correlation Between Slate Grocery and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Mapletree Commercial 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 Mapletree Commercial 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 Mapletree Commercial Trust, you can compare the effects of market volatilities on Slate Grocery and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Mapletree Commercial.
Diversification Opportunities for Slate Grocery and Mapletree Commercial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and Mapletree is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Slate Grocery i.e., Slate Grocery and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Slate Grocery and Mapletree Commercial
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 0.61 times more return on investment than Mapletree Commercial. However, Slate Grocery REIT is 1.65 times less risky than Mapletree Commercial. It trades about 0.11 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about 0.02 per unit of risk. If you would invest 698.00 in Slate Grocery REIT on September 14, 2024 and sell it today you would earn a total of 330.00 from holding Slate Grocery REIT or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Slate Grocery REIT |
| Mapletree Commercial |
Slate Grocery and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Mapletree Commercial
The main advantage of trading using opposite Slate Grocery and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Braemar Hotels Resorts | Slate Grocery vs. Braemar Hotels Resorts |
| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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