Correlation Between Castellana Properties and Merlin Properties
Can any of the company-specific risk be diversified away by investing in both Castellana Properties and Merlin Properties 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 Castellana Properties and Merlin Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellana Properties Socimi and Merlin Properties SOCIMI, you can compare the effects of market volatilities on Castellana Properties and Merlin Properties 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 Castellana Properties with a short position of Merlin Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellana Properties and Merlin Properties.
Diversification Opportunities for Castellana Properties and Merlin Properties
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Castellana and Merlin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Castellana Properties Socimi and Merlin Properties SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merlin Properties SOCIMI and Castellana Properties 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 Castellana Properties Socimi are associated (or correlated) with Merlin Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merlin Properties SOCIMI has no effect on the direction of Castellana Properties i.e., Castellana Properties and Merlin Properties go up and down completely randomly.
Pair Corralation between Castellana Properties and Merlin Properties
If you would invest 1,019 in Merlin Properties SOCIMI on November 3, 2024 and sell it today you would earn a total of 99.00 from holding Merlin Properties SOCIMI or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellana Properties Socimi vs. Merlin Properties SOCIMI
Performance |
| Timeline |
| Castellana Properties |
| Merlin Properties SOCIMI |
Castellana Properties and Merlin Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellana Properties and Merlin Properties
The main advantage of trading using opposite Castellana Properties and Merlin Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellana Properties position performs unexpectedly, Merlin Properties 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 Merlin Properties will offset losses from the drop in Merlin Properties' long position.| Castellana Properties vs. Naturhouse Health SA | Castellana Properties vs. Melia Hotels | Castellana Properties vs. Neinor Homes SLU | Castellana Properties vs. Media Investment Optimization |
| Merlin Properties vs. Plasticos Compuestos SA | Merlin Properties vs. Naturhouse Health SA | Merlin Properties vs. Parlem Telecom Companyia | Merlin Properties vs. Azaria Rental SOCIMI |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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