Correlation Between CSHG Real and BRIO REAL

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

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

Diversification Opportunities for CSHG Real and BRIO REAL

0.57

Correlation Coefficient

CSHG Real  BRIO REAL

Very weak diversification

The 3 months correlation between CSHG and BRIO is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CSHG Real Estate and BRIO REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIO REAL ESTATE and CSHG 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 CSHG Real Estate are associated (or correlated) with BRIO REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIO REAL ESTATE has no effect on the direction of CSHG Real i.e., CSHG Real and BRIO REAL go up and down completely randomly.

Pair Corralation between CSHG Real and BRIO REAL

Assuming the 90 days trading horizon CSHG Real Estate is expected to generate 4.44 times more return on investment than BRIO REAL. However, CSHG Real is 4.44 times more volatile than BRIO REAL ESTATE. It trades about 0.08 of its potential returns per unit of risk. BRIO REAL ESTATE is currently generating about 0.13 per unit of risk. If you would invest  11,041  in CSHG Real Estate on April 22, 2025 and sell it today you would earn a total of  629.00  from holding CSHG Real Estate or generate 5.7% return on investment over 90 days.

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

CSHG Real Estate  vs.  BRIO REAL ESTATE

CSHG Real Estate

Risk-Adjusted Performance

Modest

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

BRIO REAL ESTATE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BRIO REAL ESTATE are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, BRIO 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 CSHG Real and BRIO REAL

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

The idea behind CSHG Real Estate and BRIO 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.