diversifiable risk of combining GLOBAL REAL and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBAL REAL ESTATE and NYSE Composite, you can compare the effects of market volatilities on GLOBAL REAL and NYSE Composite 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 GLOBAL REAL with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBAL REAL and NYSE Composite.
Diversification Opportunities for GLOBAL REAL and NYSE Composite
Pair Corralation between GLOBAL REAL and NYSE Composite
GLOBAL REAL ESTATE vs. NYSE Composite
GLOBAL REAL and NYSE Composite Volatility Contrast
Pair Trading with GLOBAL REAL and NYSE CompositeThe main advantage of trading using opposite GLOBAL REAL and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBAL REAL position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position. The idea behind GLOBAL REAL ESTATE and NYSE Composite 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..