Correlation Between Slate Grocery and Primaris Real
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Primaris 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 Primaris 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 Primaris Real Estate, you can compare the effects of market volatilities on Slate Grocery and Primaris 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 Primaris Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Primaris Real.
Diversification Opportunities for Slate Grocery and Primaris Real
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Primaris is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Primaris Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris 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 Primaris Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Real Estate has no effect on the direction of Slate Grocery i.e., Slate Grocery and Primaris Real go up and down completely randomly.
Pair Corralation between Slate Grocery and Primaris Real
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 3.14 times more return on investment than Primaris Real. However, Slate Grocery is 3.14 times more volatile than Primaris Real Estate. It trades about 0.32 of its potential returns per unit of risk. Primaris Real Estate is currently generating about -0.37 per unit of risk. If you would invest 972.00 in Slate Grocery REIT on September 1, 2024 and sell it today you would earn a total of 94.00 from holding Slate Grocery REIT or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Primaris Real Estate
Performance |
| Timeline |
| Slate Grocery REIT |
| Primaris Real Estate |
Slate Grocery and Primaris Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Primaris Real
The main advantage of trading using opposite Slate Grocery and Primaris Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Primaris 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 Primaris Real will offset losses from the drop in Primaris Real's long position.| Slate Grocery vs. Choice Properties Real | Slate Grocery vs. CT Real Estate | Slate Grocery vs. Firm Capital Property | Slate Grocery vs. Riocan REIT |
| Primaris Real vs. Slate Grocery REIT | Primaris Real vs. Seritage Growth Properties | Primaris Real vs. Smart REIT | Primaris Real vs. Riocan 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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