Correlation Between Thesis Gold and HR Real
Can any of the company-specific risk be diversified away by investing in both Thesis Gold and HR 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 Thesis Gold and HR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thesis Gold and HR Real Estate, you can compare the effects of market volatilities on Thesis Gold and HR 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 Thesis Gold with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thesis Gold and HR Real.
Diversification Opportunities for Thesis Gold and HR Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thesis and HR-UN is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Thesis Gold and HR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Real Estate and Thesis Gold 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 Thesis Gold are associated (or correlated) with HR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Real Estate has no effect on the direction of Thesis Gold i.e., Thesis Gold and HR Real go up and down completely randomly.
Pair Corralation between Thesis Gold and HR Real
Assuming the 90 days horizon Thesis Gold is expected to generate 7.94 times more return on investment than HR Real. However, Thesis Gold is 7.94 times more volatile than HR Real Estate. It trades about 0.04 of its potential returns per unit of risk. HR Real Estate is currently generating about 0.01 per unit of risk. If you would invest 60.00 in Thesis Gold on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Thesis Gold or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thesis Gold vs. HR Real Estate
Performance |
| Timeline |
| Thesis Gold |
| HR Real Estate |
Thesis Gold and HR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thesis Gold and HR Real
The main advantage of trading using opposite Thesis Gold and HR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thesis Gold position performs unexpectedly, HR 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 HR Real will offset losses from the drop in HR Real's long position.| Thesis Gold vs. Lion One Metals | Thesis Gold vs. Goliath Resources | Thesis Gold vs. Dolly Varden Silver | Thesis Gold vs. Nevada King Gold |
| HR Real vs. RioCan Real Estate | HR Real vs. Canadian Apartment Properties | HR Real vs. SmartCentres Real Estate | HR Real vs. Allied Properties 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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