Correlation Analysis Between RIOCAN REAL and Shanghai

This module allows you to analyze existing cross correlation between RIOCAN REAL EST UN and Shanghai. You can compare the effects of market volatilities on RIOCAN REAL and Shanghai 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 RIOCAN REAL with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of RIOCAN REAL and Shanghai.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

RIOCAN REAL EST UN  vs.  Shanghai

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, RIOCAN REAL is expected to generate 15.0 times less return on investment than Shanghai. But when comparing it to its historical volatility, RIOCAN REAL EST UN is 1.17 times less risky than Shanghai. It trades about 0.0 of its potential returns per unit of risk. Shanghai is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  282,382  in Shanghai on October 14, 2019 and sell it today you would earn a total of  8,142  from holding Shanghai or generate 2.88% return on investment over 30 days.

Pair Corralation between RIOCAN REAL and Shanghai

-0.02
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy92.06%
ValuesDaily Returns

Diversification Opportunities for RIOCAN REAL and Shanghai

RIOCAN REAL EST UN diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding RIOCAN REAL EST UN and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai and RIOCAN 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 RIOCAN REAL EST UN are associated (or correlated) with Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai has no effect on the direction of RIOCAN REAL i.e. RIOCAN REAL and Shanghai go up and down completely randomly.
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See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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