Correlation Between DDMP REIT and Filinvest REIT
Can any of the company-specific risk be diversified away by investing in both DDMP REIT and Filinvest REIT 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 DDMP REIT and Filinvest REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DDMP REIT and Filinvest REIT Corp, you can compare the effects of market volatilities on DDMP REIT and Filinvest REIT 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 DDMP REIT with a short position of Filinvest REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DDMP REIT and Filinvest REIT.
Diversification Opportunities for DDMP REIT and Filinvest REIT
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between DDMP and Filinvest is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding DDMP REIT and Filinvest REIT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest REIT Corp and DDMP REIT 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 DDMP REIT are associated (or correlated) with Filinvest REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest REIT Corp has no effect on the direction of DDMP REIT i.e., DDMP REIT and Filinvest REIT go up and down completely randomly.
Pair Corralation between DDMP REIT and Filinvest REIT
Assuming the 90 days trading horizon DDMP REIT is expected to under-perform the Filinvest REIT. In addition to that, DDMP REIT is 1.0 times more volatile than Filinvest REIT Corp. It trades about -0.03 of its total potential returns per unit of risk. Filinvest REIT Corp is currently generating about 0.04 per unit of volatility. If you would invest 268.00 in Filinvest REIT Corp on September 24, 2024 and sell it today you would earn a total of 18.00 from holding Filinvest REIT Corp or generate 6.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DDMP REIT vs. Filinvest REIT Corp
Performance |
Timeline |
DDMP REIT |
Filinvest REIT Corp |
DDMP REIT and Filinvest REIT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DDMP REIT and Filinvest REIT
The main advantage of trading using opposite DDMP REIT and Filinvest REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DDMP REIT position performs unexpectedly, Filinvest REIT 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 Filinvest REIT will offset losses from the drop in Filinvest REIT's long position.DDMP REIT vs. AyalaLand REIT | DDMP REIT vs. Filinvest REIT Corp | DDMP REIT vs. Century Pacific Food | DDMP REIT vs. RFM Corp |
Filinvest REIT vs. AyalaLand REIT | Filinvest REIT vs. DDMP REIT | Filinvest REIT vs. Century Pacific Food | Filinvest REIT vs. RFM 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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