Correlation Between Suntec Real and Fibra UNO
Can any of the company-specific risk be diversified away by investing in both Suntec Real and Fibra UNO 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 Suntec Real and Fibra UNO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntec Real Estate and Fibra UNO, you can compare the effects of market volatilities on Suntec Real and Fibra UNO 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 Suntec Real with a short position of Fibra UNO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntec Real and Fibra UNO.
Diversification Opportunities for Suntec Real and Fibra UNO
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Suntec and Fibra is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Suntec Real Estate and Fibra UNO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra UNO and Suntec 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 Suntec Real Estate are associated (or correlated) with Fibra UNO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra UNO has no effect on the direction of Suntec Real i.e., Suntec Real and Fibra UNO go up and down completely randomly.
Pair Corralation between Suntec Real and Fibra UNO
If you would invest 88.00 in Suntec Real Estate on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Suntec Real Estate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 42.72% |
| Values | Daily Returns |
Suntec Real Estate vs. Fibra UNO
Performance |
| Timeline |
| Suntec Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fibra UNO |
Suntec Real and Fibra UNO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntec Real and Fibra UNO
The main advantage of trading using opposite Suntec Real and Fibra UNO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntec Real position performs unexpectedly, Fibra UNO 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 Fibra UNO will offset losses from the drop in Fibra UNO's long position.| Suntec Real vs. Fibra UNO | Suntec Real vs. Presidio Property Trust | Suntec Real vs. Highlands REIT | Suntec Real vs. British Land |
| Fibra UNO vs. Global Net Lease, | Fibra UNO vs. Brightspire Capital | Fibra UNO vs. NexPoint Strategic Opportunities | Fibra UNO vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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