Correlation Between Chartwell Retirement and Morguard Real

Can any of the company-specific risk be diversified away by investing in both Chartwell Retirement and Morguard Real 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 Chartwell Retirement and Morguard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chartwell Retirement Residences and Morguard Real Estate, you can compare the effects of market volatilities on Chartwell Retirement and Morguard Real 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 Chartwell Retirement with a short position of Morguard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Retirement and Morguard Real.

Diversification Opportunities for Chartwell Retirement and Morguard Real

0.77

Correlation Coefficient

Chartwell Retirement  Morguard Real

Poor diversification

The 3 months correlation between Chartwell and Morguard is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Retirement Residence and Morguard Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morguard Real Estate and Chartwell Retirement 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 Chartwell Retirement Residences are associated (or correlated) with Morguard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morguard Real Estate has no effect on the direction of Chartwell Retirement i.e., Chartwell Retirement and Morguard Real go up and down completely randomly.

Pair Corralation between Chartwell Retirement and Morguard Real

Assuming the 90 days trading horizon Chartwell Retirement Residences is expected to generate 1.46 times more return on investment than Morguard Real. However, Chartwell Retirement is 1.46 times more volatile than Morguard Real Estate. It trades about 0.1 of its potential returns per unit of risk. Morguard Real Estate is currently generating about 0.09 per unit of risk. If you would invest  1,650  in Chartwell Retirement Residences on March 27, 2025 and sell it today you would earn a total of  146.00  from holding Chartwell Retirement Residences or generate 8.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Chartwell Retirement Residence  vs.  Morguard Real Estate

Chartwell Retirement

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chartwell Retirement Residences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical indicators, Chartwell Retirement may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Morguard Real Estate

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Morguard Real Estate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Morguard Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Chartwell Retirement and Morguard Real

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

The idea behind Chartwell Retirement Residences and Morguard Real Estate 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.