Correlation Between Palmer Square and CAMDEN
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By analyzing existing cross correlation between Palmer Square Ultra Short and CAMDEN PPTY TR, you can compare the effects of market volatilities on Palmer Square and CAMDEN 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 Palmer Square with a short position of CAMDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palmer Square and CAMDEN.
Diversification Opportunities for Palmer Square and CAMDEN
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Palmer and CAMDEN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Palmer Square Ultra Short and CAMDEN PPTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMDEN PPTY TR and Palmer Square 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 Palmer Square Ultra Short are associated (or correlated) with CAMDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMDEN PPTY TR has no effect on the direction of Palmer Square i.e., Palmer Square and CAMDEN go up and down completely randomly.
Pair Corralation between Palmer Square and CAMDEN
Assuming the 90 days horizon Palmer Square Ultra Short is expected to generate 0.04 times more return on investment than CAMDEN. However, Palmer Square Ultra Short is 28.19 times less risky than CAMDEN. It trades about 0.71 of its potential returns per unit of risk. CAMDEN PPTY TR is currently generating about -0.21 per unit of risk. If you would invest 1,988 in Palmer Square Ultra Short on September 25, 2024 and sell it today you would earn a total of 23.00 from holding Palmer Square Ultra Short or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 82.54% |
Values | Daily Returns |
Palmer Square Ultra Short vs. CAMDEN PPTY TR
Performance |
Timeline |
Palmer Square Ultra |
CAMDEN PPTY TR |
Palmer Square and CAMDEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palmer Square and CAMDEN
The main advantage of trading using opposite Palmer Square and CAMDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palmer Square position performs unexpectedly, CAMDEN 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 CAMDEN will offset losses from the drop in CAMDEN's long position.Palmer Square vs. Palmer Square Ssi | Palmer Square vs. Short Term Income Fund | Palmer Square vs. Palmer Square Income | Palmer Square vs. Acm Dynamic Opportunity |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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