Correlation Between Stratus Properties and SM Prime

Can any of the company-specific risk be diversified away by investing in both Stratus Properties and SM Prime 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 Stratus Properties and SM Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stratus Properties and SM Prime Holdings, you can compare the effects of market volatilities on Stratus Properties and SM Prime 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 Stratus Properties with a short position of SM Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratus Properties and SM Prime.

Diversification Opportunities for Stratus Properties and SM Prime

0.0

Correlation Coefficient

Stratus Properties  SM Prime

Pay attention - limited upside

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

Pair Corralation between Stratus Properties and SM Prime

If you would invest  46.00  in SM Prime Holdings on October 10, 2024 and sell it today you would earn a total of  0.00  from holding SM Prime Holdings or generate 0.0% return on investment over 90 days.

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

Stratus Properties  vs.  SM Prime Holdings

Stratus Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stratus Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SM Prime Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Stratus Properties and SM Prime

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

The idea behind Stratus Properties and SM Prime Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.