Correlation Between PANORAMA REAL and CSHG Real

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

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

Diversification Opportunities for PANORAMA REAL and CSHG Real

0.75

Correlation Coefficient

PANORAMA REAL  CSHG Real

Poor diversification

The 3 months correlation between PANORAMA and CSHG is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PANORAMA REAL ESTATE and CSHG Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Real Estate and PANORAMA 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 PANORAMA REAL ESTATE are associated (or correlated) with CSHG Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Real Estate has no effect on the direction of PANORAMA REAL i.e., PANORAMA REAL and CSHG Real go up and down completely randomly.

Pair Corralation between PANORAMA REAL and CSHG Real

Assuming the 90 days trading horizon PANORAMA REAL ESTATE is expected to generate 1.34 times more return on investment than CSHG Real. However, PANORAMA REAL is 1.34 times more volatile than CSHG Real Estate. It trades about 0.14 of its potential returns per unit of risk. CSHG Real Estate is currently generating about 0.08 per unit of risk. If you would invest  9,228  in PANORAMA REAL ESTATE on April 22, 2025 and sell it today you would earn a total of  1,367  from holding PANORAMA REAL ESTATE or generate 14.81% return on investment over 90 days.

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

PANORAMA REAL ESTATE  vs.  CSHG Real Estate

PANORAMA REAL ESTATE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PANORAMA REAL ESTATE are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, PANORAMA REAL sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with PANORAMA REAL and CSHG Real

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

The idea behind PANORAMA REAL ESTATE and CSHG 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.