Correlation Between Sa Real and Equinox Campbell

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

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

Diversification Opportunities for Sa Real and Equinox Campbell

-0.58

Correlation Coefficient

Sa Real  Equinox Campbell

Excellent diversification

The 3 months correlation between SAREX and Equinox is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate and Equinox Campbell Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Campbell Strategy and Sa Real 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 Sa Real Estate are associated (or correlated) with Equinox Campbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Campbell Strategy has no effect on the direction of Sa Real i.e., Sa Real and Equinox Campbell go up and down completely randomly.

Pair Corralation between Sa Real and Equinox Campbell

Assuming the 90 days horizon Sa Real Estate is expected to under-perform the Equinox Campbell. In addition to that, Sa Real is 2.21 times more volatile than Equinox Campbell Strategy. It trades about -0.24 of its total potential returns per unit of risk. Equinox Campbell Strategy is currently generating about 0.18 per unit of volatility. If you would invest  909.00  in Equinox Campbell Strategy on October 13, 2024 and sell it today you would earn a total of  18.00  from holding Equinox Campbell Strategy or generate 1.98% return on investment over 90 days.

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

Sa Real Estate  vs.  Equinox Campbell Strategy

Sa Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sa Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Equinox Campbell Strategy

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Equinox Campbell Strategy are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Equinox Campbell is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sa Real and Equinox Campbell

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

The idea behind Sa Real Estate and Equinox Campbell Strategy 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.