Correlation Between Killam Apartment and InterRent Real

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

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

Diversification Opportunities for Killam Apartment and InterRent Real

0.98

Correlation Coefficient

Killam Apartment  InterRent Real

Almost no diversification

The 3 months correlation between Killam and InterRent is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and InterRent Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterRent Real Estate and Killam Apartment 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 Killam Apartment Real are associated (or correlated) with InterRent Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterRent Real Estate has no effect on the direction of Killam Apartment i.e., Killam Apartment and InterRent Real go up and down completely randomly.

Pair Corralation between Killam Apartment and InterRent Real

Assuming the 90 days trading horizon Killam Apartment is expected to generate 1.59 times less return on investment than InterRent Real. But when comparing it to its historical volatility, Killam Apartment Real is 1.53 times less risky than InterRent Real. It trades about 0.16 of its potential returns per unit of risk. InterRent Real Estate is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,085  in InterRent Real Estate on April 22, 2025 and sell it today you would earn a total of  248.00  from holding InterRent Real Estate or generate 22.86% return on investment over 90 days.

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

Killam Apartment Real  vs.  InterRent Real Estate

Killam Apartment Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Killam Apartment Real are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Killam Apartment sustained solid returns over the last few months and may actually be approaching a breakup point.

InterRent Real Estate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InterRent Real Estate are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, InterRent Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Killam Apartment and InterRent Real

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

The idea behind Killam Apartment Real and InterRent 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.