Correlation Between SmartCentres Real and Urbanfund Corp
Can any of the company-specific risk be diversified away by investing in both SmartCentres Real and Urbanfund Corp 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 SmartCentres Real and Urbanfund Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartCentres Real Estate and Urbanfund Corp, you can compare the effects of market volatilities on SmartCentres Real and Urbanfund Corp 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 SmartCentres Real with a short position of Urbanfund Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartCentres Real and Urbanfund Corp.
Diversification Opportunities for SmartCentres Real and Urbanfund Corp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SmartCentres and Urbanfund is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SmartCentres Real Estate and Urbanfund Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbanfund Corp and SmartCentres Real 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 SmartCentres Real Estate are associated (or correlated) with Urbanfund Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbanfund Corp has no effect on the direction of SmartCentres Real i.e., SmartCentres Real and Urbanfund Corp go up and down completely randomly.
Pair Corralation between SmartCentres Real and Urbanfund Corp
Assuming the 90 days trading horizon SmartCentres Real Estate is expected to generate 0.91 times more return on investment than Urbanfund Corp. However, SmartCentres Real Estate is 1.1 times less risky than Urbanfund Corp. It trades about 0.19 of its potential returns per unit of risk. Urbanfund Corp is currently generating about 0.14 per unit of risk. If you would invest 2,445 in SmartCentres Real Estate on November 27, 2024 and sell it today you would earn a total of 108.00 from holding SmartCentres Real Estate or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmartCentres Real Estate vs. Urbanfund Corp
Performance |
| Timeline |
| SmartCentres Real Estate |
| Urbanfund Corp |
SmartCentres Real and Urbanfund Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartCentres Real and Urbanfund Corp
The main advantage of trading using opposite SmartCentres Real and Urbanfund Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartCentres Real position performs unexpectedly, Urbanfund Corp 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 Urbanfund Corp will offset losses from the drop in Urbanfund Corp's long position.| SmartCentres Real vs. RioCan Real Estate | SmartCentres Real vs. NorthWest Healthcare Properties | SmartCentres Real vs. HR Real Estate | SmartCentres Real vs. Choice Properties Real |
| Urbanfund Corp vs. Westbond Enterprises Corp | Urbanfund Corp vs. Imperial Equities | Urbanfund Corp vs. Findev Inc | Urbanfund Corp vs. Canadian Net Real |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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