Correlation Between CT Real and Granite Real
Can any of the company-specific risk be diversified away by investing in both CT Real and Granite 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 CT Real and Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Real Estate and Granite Real Estate, you can compare the effects of market volatilities on CT Real and Granite 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 CT Real with a short position of Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and Granite Real.
Diversification Opportunities for CT Real and Granite Real
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CRT-UN and Granite is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate and CT Real 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 CT Real Estate are associated (or correlated) with Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of CT Real i.e., CT Real and Granite Real go up and down completely randomly.
Pair Corralation between CT Real and Granite Real
Assuming the 90 days trading horizon CT Real Estate is expected to generate 0.83 times more return on investment than Granite Real. However, CT Real Estate is 1.2 times less risky than Granite Real. It trades about -0.1 of its potential returns per unit of risk. Granite Real Estate is currently generating about -0.1 per unit of risk. If you would invest 1,583 in CT Real Estate on September 12, 2024 and sell it today you would lose (93.00) from holding CT Real Estate or give up 5.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CT Real Estate vs. Granite Real Estate
Performance |
Timeline |
CT Real Estate |
Granite Real Estate |
CT Real and Granite Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CT Real and Granite Real
The main advantage of trading using opposite CT Real and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, Granite 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 Granite Real will offset losses from the drop in Granite Real's long position.CT Real vs. Choice Properties Real | CT Real vs. Crombie Real Estate | CT Real vs. Granite Real Estate | CT Real vs. Allied Properties Real |
Granite Real vs. InterRent Real Estate | Granite Real vs. Canadian Apartment Properties | Granite Real vs. Crombie Real Estate | Granite Real vs. Dream Industrial 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |