Correlation Between XLMedia PLC and Slate Office
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Slate Office 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 XLMedia PLC and Slate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Slate Office REIT, you can compare the effects of market volatilities on XLMedia PLC and Slate Office 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 XLMedia PLC with a short position of Slate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Slate Office.
Diversification Opportunities for XLMedia PLC and Slate Office
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between XLMedia and Slate is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Slate Office go up and down completely randomly.
Pair Corralation between XLMedia PLC and Slate Office
Assuming the 90 days horizon XLMedia PLC is expected to generate 1.65 times less return on investment than Slate Office. But when comparing it to its historical volatility, XLMedia PLC is 1.4 times less risky than Slate Office. It trades about 0.08 of its potential returns per unit of risk. Slate Office REIT is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Slate Office REIT on September 2, 2024 and sell it today you would earn a total of 9.00 from holding Slate Office REIT or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
XLMedia PLC vs. Slate Office REIT
Performance |
| Timeline |
| XLMedia PLC |
| Slate Office REIT |
XLMedia PLC and Slate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Slate Office
The main advantage of trading using opposite XLMedia PLC and Slate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Slate Office 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 Slate Office will offset losses from the drop in Slate Office's long position.| XLMedia PLC vs. Slate Office REIT | XLMedia PLC vs. HUMANA INC | XLMedia PLC vs. Aquagold International | XLMedia PLC vs. Barloworld Ltd ADR |
| Slate Office vs. Franklin Street Properties | Slate Office vs. Douglas Emmett | Slate Office vs. Highwoods Properties | Slate Office vs. Brandywine Realty Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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