Correlation Between Equinix and CatchMark Timber
Can any of the company-specific risk be diversified away by investing in both Equinix and CatchMark Timber 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 Equinix and CatchMark Timber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and CatchMark Timber Trust, you can compare the effects of market volatilities on Equinix and CatchMark Timber 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 Equinix with a short position of CatchMark Timber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and CatchMark Timber.
Diversification Opportunities for Equinix and CatchMark Timber
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Equinix and CatchMark is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and CatchMark Timber Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CatchMark Timber Trust and Equinix 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 Equinix are associated (or correlated) with CatchMark Timber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CatchMark Timber Trust has no effect on the direction of Equinix i.e., Equinix and CatchMark Timber go up and down completely randomly.
Pair Corralation between Equinix and CatchMark Timber
If you would invest 1,037 in CatchMark Timber Trust on January 26, 2024 and sell it today you would earn a total of 0.00 from holding CatchMark Timber Trust or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Equinix vs. CatchMark Timber Trust
Performance |
Timeline |
Equinix |
CatchMark Timber Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Equinix and CatchMark Timber Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equinix and CatchMark Timber
The main advantage of trading using opposite Equinix and CatchMark Timber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, CatchMark Timber 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 CatchMark Timber will offset losses from the drop in CatchMark Timber's long position.Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
CatchMark Timber vs. Insteel Industries | CatchMark Timber vs. BlueScope Steel Limited | CatchMark Timber vs. Dave Busters Entertainment | CatchMark Timber vs. Tianjin Capital Environmental |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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