Correlation Between Rreef Property and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Rreef Property and Floating Rate 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 Rreef Property and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rreef Property Trust and Floating Rate Fund, you can compare the effects of market volatilities on Rreef Property and Floating Rate 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 Rreef Property with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rreef Property and Floating Rate.
Diversification Opportunities for Rreef Property and Floating Rate
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rreef and Floating is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rreef Property Trust and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Rreef Property 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 Rreef Property Trust are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Rreef Property i.e., Rreef Property and Floating Rate go up and down completely randomly.
Pair Corralation between Rreef Property and Floating Rate
Assuming the 90 days trading horizon Rreef Property Trust is expected to generate 0.71 times more return on investment than Floating Rate. However, Rreef Property Trust is 1.4 times less risky than Floating Rate. It trades about 0.28 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.12 per unit of risk. If you would invest 1,326 in Rreef Property Trust on November 7, 2024 and sell it today you would earn a total of 8.00 from holding Rreef Property Trust or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rreef Property Trust vs. Floating Rate Fund
Performance |
| Timeline |
| Rreef Property Trust |
| Floating Rate |
Rreef Property and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rreef Property and Floating Rate
The main advantage of trading using opposite Rreef Property and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rreef Property position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Rreef Property vs. Transamerica Large Cap | Rreef Property vs. Siit Large Cap | Rreef Property vs. Fisher Large Cap | Rreef Property vs. Qs Large Cap |
| Floating Rate vs. Simt High Yield | Floating Rate vs. Tiaa Cref High Yield | Floating Rate vs. Multi Manager High Yield | Floating Rate vs. Buffalo High Yield |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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