Correlation Between Dividend and Crombie Real

Can any of the company-specific risk be diversified away by investing in both Dividend and Crombie 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 Dividend and Crombie Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dividend 15 Split and Crombie Real Estate, you can compare the effects of market volatilities on Dividend and Crombie 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 Dividend with a short position of Crombie Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend and Crombie Real.

Diversification Opportunities for Dividend and Crombie Real

-0.77

Correlation Coefficient

Dividend  Crombie Real

Pay attention - limited upside

The 3 months correlation between Dividend and Crombie is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dividend 15 Split and Crombie Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crombie Real Estate and Dividend 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 Dividend 15 Split are associated (or correlated) with Crombie Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crombie Real Estate has no effect on the direction of Dividend i.e., Dividend and Crombie Real go up and down completely randomly.

Pair Corralation between Dividend and Crombie Real

Assuming the 90 days horizon Dividend 15 Split is expected to generate 0.94 times more return on investment than Crombie Real. However, Dividend 15 Split is 1.06 times less risky than Crombie Real. It trades about 0.32 of its potential returns per unit of risk. Crombie Real Estate is currently generating about -0.14 per unit of risk. If you would invest  537.00  in Dividend 15 Split on September 12, 2024 and sell it today you would earn a total of  106.00  from holding Dividend 15 Split or generate 19.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dividend 15 Split  vs.  Crombie Real Estate

Dividend 15 Split

Risk-Adjusted Performance

24 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dividend displayed solid returns over the last few months and may actually be approaching a breakup point.

Crombie Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crombie Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Dividend and Crombie Real

The main advantage of trading using opposite Dividend and Crombie Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend position performs unexpectedly, Crombie 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 Crombie Real will offset losses from the drop in Crombie Real's long position.

The idea behind Dividend 15 Split and Crombie Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.