Correlation Between Cshg Jhsf and Real Estate

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

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

Diversification Opportunities for Cshg Jhsf and Real Estate

-0.21

Correlation Coefficient

Cshg Jhsf  Real Estate

Very good diversification

The 3 months correlation between Cshg and Real is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Jhsf Prime and Real Estate Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Investment and Cshg Jhsf 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 Cshg Jhsf Prime are associated (or correlated) with Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Investment has no effect on the direction of Cshg Jhsf i.e., Cshg Jhsf and Real Estate go up and down completely randomly.

Pair Corralation between Cshg Jhsf and Real Estate

Assuming the 90 days trading horizon Cshg Jhsf is expected to generate 1.56 times less return on investment than Real Estate. In addition to that, Cshg Jhsf is 1.25 times more volatile than Real Estate Investment. It trades about 0.01 of its total potential returns per unit of risk. Real Estate Investment is currently generating about 0.02 per unit of volatility. If you would invest  48,763  in Real Estate Investment on October 11, 2024 and sell it today you would earn a total of  160.00  from holding Real Estate Investment or generate 0.33% return on investment over 90 days.

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

Cshg Jhsf Prime  vs.  Real Estate Investment

Cshg Jhsf Prime

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cshg Jhsf Prime has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Real Estate Investment

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Real Estate Investment are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong forward indicators, Real Estate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cshg Jhsf and Real Estate

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

The idea behind Cshg Jhsf Prime and Real Estate Investment 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.