Correlation Between Firm Capital and CT Real

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

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

Diversification Opportunities for Firm Capital and CT Real

0.0

Correlation Coefficient

Firm Capital  CT Real

Pay attention - limited upside

The 3 months correlation between Firm and CTRRF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Firm Capital Property and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Firm Capital 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 Firm Capital Property are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Firm Capital i.e., Firm Capital and CT Real go up and down completely randomly.

Pair Corralation between Firm Capital and CT Real

If you would invest  364.00  in Firm Capital Property on December 28, 2024 and sell it today you would earn a total of  42.00  from holding Firm Capital Property or generate 11.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Firm Capital Property  vs.  CT Real Estate

Firm Capital Property

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Firm Capital Property are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Firm Capital may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CT Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days CT Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CT Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Firm Capital and CT Real

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

The idea behind Firm Capital Property and CT 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.