Correlation Between VistaREIT and COL Financial
Can any of the company-specific risk be diversified away by investing in both VistaREIT and COL Financial 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 VistaREIT and COL Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VistaREIT and COL Financial Group, you can compare the effects of market volatilities on VistaREIT and COL Financial 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 VistaREIT with a short position of COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of VistaREIT and COL Financial.
Diversification Opportunities for VistaREIT and COL Financial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VistaREIT and COL is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding VistaREIT and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group and VistaREIT 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 VistaREIT are associated (or correlated) with COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of VistaREIT i.e., VistaREIT and COL Financial go up and down completely randomly.
Pair Corralation between VistaREIT and COL Financial
Assuming the 90 days trading horizon VistaREIT is expected to generate 0.38 times more return on investment than COL Financial. However, VistaREIT is 2.64 times less risky than COL Financial. It trades about 0.0 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.24 per unit of risk. If you would invest 178.00 in VistaREIT on August 29, 2024 and sell it today you would earn a total of 0.00 from holding VistaREIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VistaREIT vs. COL Financial Group
Performance |
| Timeline |
| VistaREIT |
| COL Financial Group |
VistaREIT and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VistaREIT and COL Financial
The main advantage of trading using opposite VistaREIT and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VistaREIT position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| VistaREIT vs. Top Frontier Investment | VistaREIT vs. Bank of the | VistaREIT vs. Sun Life Financial | VistaREIT vs. Crown Asia Chemicals |
| COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. Medco Holdings | COL Financial vs. Allhome 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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