Correlation Between Oasis Crescent and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both Oasis Crescent and Growthpoint Properties 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 Oasis Crescent and Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Crescent Property and Growthpoint Properties, you can compare the effects of market volatilities on Oasis Crescent and Growthpoint Properties 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 Oasis Crescent with a short position of Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Crescent and Growthpoint Properties.
Diversification Opportunities for Oasis Crescent and Growthpoint Properties
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oasis and Growthpoint is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Crescent Property and Growthpoint Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties and Oasis Crescent 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 Oasis Crescent Property are associated (or correlated) with Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of Oasis Crescent i.e., Oasis Crescent and Growthpoint Properties go up and down completely randomly.
Pair Corralation between Oasis Crescent and Growthpoint Properties
Assuming the 90 days trading horizon Oasis Crescent Property is expected to generate 1.39 times more return on investment than Growthpoint Properties. However, Oasis Crescent is 1.39 times more volatile than Growthpoint Properties. It trades about 0.19 of its potential returns per unit of risk. Growthpoint Properties is currently generating about -0.05 per unit of risk. If you would invest 195,000 in Oasis Crescent Property on September 25, 2024 and sell it today you would earn a total of 10,000 from holding Oasis Crescent Property or generate 5.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Oasis Crescent Property vs. Growthpoint Properties
Performance |
Timeline |
Oasis Crescent Property |
Growthpoint Properties |
Oasis Crescent and Growthpoint Properties Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oasis Crescent and Growthpoint Properties
The main advantage of trading using opposite Oasis Crescent and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Crescent position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.Oasis Crescent vs. Growthpoint Properties | Oasis Crescent vs. Emira Property | Oasis Crescent vs. Dipula Income | Oasis Crescent vs. Octodec |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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