Correlation Between Slate Grocery and Choice Properties
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Choice Properties 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 Choice Properties 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 Choice Properties Real, you can compare the effects of market volatilities on Slate Grocery and Choice Properties 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 Choice Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Choice Properties.
Diversification Opportunities for Slate Grocery and Choice Properties
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Slate and Choice is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Choice Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Properties Real 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 Choice Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Properties Real has no effect on the direction of Slate Grocery i.e., Slate Grocery and Choice Properties go up and down completely randomly.
Pair Corralation between Slate Grocery and Choice Properties
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 1.33 times more return on investment than Choice Properties. However, Slate Grocery is 1.33 times more volatile than Choice Properties Real. It trades about 0.27 of its potential returns per unit of risk. Choice Properties Real is currently generating about -0.25 per unit of risk. If you would invest 992.00 in Slate Grocery REIT on August 28, 2024 and sell it today you would earn a total of 69.00 from holding Slate Grocery REIT or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Slate Grocery REIT vs. Choice Properties Real
Performance |
| Timeline |
| Slate Grocery REIT |
| Choice Properties Real |
Slate Grocery and Choice Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Choice Properties
The main advantage of trading using opposite Slate Grocery and Choice Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Choice Properties 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 Choice Properties will offset losses from the drop in Choice Properties' long position.| Slate Grocery vs. Smart REIT | Slate Grocery vs. Phillips Edison Co | Slate Grocery vs. Simon Property Group | Slate Grocery vs. Inventrust Properties Corp |
| Choice Properties vs. Smart REIT | Choice Properties vs. Phillips Edison Co | Choice Properties vs. Simon Property Group | Choice Properties vs. Inventrust Properties 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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