Correlation Between BSR Real and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both BSR Real and NYSE Composite 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 BSR 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 BSR Real Estate and NYSE Composite, you can compare the effects of market volatilities on BSR 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 BSR Real with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSR Real and NYSE Composite.
Diversification Opportunities for BSR Real and NYSE Composite
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BSR and NYSE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BSR Real Estate and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and BSR 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 BSR Real Estate are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of BSR Real i.e., BSR Real and NYSE Composite go up and down completely randomly.
Pair Corralation between BSR Real and NYSE Composite
Assuming the 90 days trading horizon BSR Real Estate is expected to under-perform the NYSE Composite. In addition to that, BSR Real is 2.1 times more volatile than NYSE Composite. It trades about -0.02 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.08 per unit of volatility. If you would invest 1,369,357 in NYSE Composite on February 1, 2024 and sell it today you would earn a total of 390,977 from holding NYSE Composite or generate 28.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BSR Real Estate vs. NYSE Composite
Performance |
Timeline |
BSR Real and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
BSR Real Estate
Pair trading matchups for BSR Real
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with BSR Real and NYSE Composite
The main advantage of trading using opposite BSR Real and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSR 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.BSR Real vs. BSR Real Estate | BSR Real vs. Minto Apartment Real | BSR Real vs. European Residential Real | BSR Real vs. Tricon Capital Group |
NYSE Composite vs. CECO Environmental Corp | NYSE Composite vs. Air Lease | NYSE Composite vs. Artisan Partners Asset | NYSE Composite vs. Iris Acquisition Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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