Correlation Between Merlin Properties and General De

Can any of the company-specific risk be diversified away by investing in both Merlin Properties and General De 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 Merlin Properties and General De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Merlin Properties SOCIMI and General de Alquiler, you can compare the effects of market volatilities on Merlin Properties and General De 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 Merlin Properties with a short position of General De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merlin Properties and General De.

Diversification Opportunities for Merlin Properties and General De

0.0

Correlation Coefficient

Merlin Properties  General De

Pay attention - limited upside

The 3 months correlation between Merlin and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merlin Properties SOCIMI and General de Alquiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General de Alquiler and Merlin Properties 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 Merlin Properties SOCIMI are associated (or correlated) with General De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General de Alquiler has no effect on the direction of Merlin Properties i.e., Merlin Properties and General De go up and down completely randomly.

Pair Corralation between Merlin Properties and General De

If you would invest  966.00  in Merlin Properties SOCIMI on April 21, 2025 and sell it today you would earn a total of  182.00  from holding Merlin Properties SOCIMI or generate 18.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Merlin Properties SOCIMI  vs.  General de Alquiler

Merlin Properties SOCIMI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Merlin Properties SOCIMI are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Merlin Properties exhibited solid returns over the last few months and may actually be approaching a breakup point.

General de Alquiler

Risk-Adjusted Performance

Very Weak

Over the last 90 days General de Alquiler has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, General De is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Merlin Properties and General De

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

The idea behind Merlin Properties SOCIMI and General de Alquiler 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.