Correlation Between Slate Grocery and BTB Real

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

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

Diversification Opportunities for Slate Grocery and BTB Real

0.64

Correlation Coefficient

Slate Grocery  BTB Real

Poor diversification

The 3 months correlation between Slate and BTB is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and BTB Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTB Real Estate and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with BTB Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTB Real Estate has no effect on the direction of Slate Grocery i.e., Slate Grocery and BTB Real go up and down completely randomly.

Pair Corralation between Slate Grocery and BTB Real

Assuming the 90 days trading horizon Slate Grocery is expected to generate 1.91 times less return on investment than BTB Real. In addition to that, Slate Grocery is 1.29 times more volatile than BTB Real Estate. It trades about 0.13 of its total potential returns per unit of risk. BTB Real Estate is currently generating about 0.33 per unit of volatility. If you would invest  321.00  in BTB Real Estate on April 21, 2025 and sell it today you would earn a total of  47.00  from holding BTB Real Estate or generate 14.64% return on investment over 90 days.

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

Slate Grocery REIT  vs.  BTB Real Estate

Slate Grocery REIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Slate Grocery REIT are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Slate Grocery may actually be approaching a critical reversion point that can send shares even higher in August 2025.

BTB Real Estate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BTB Real Estate are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, BTB Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Slate Grocery and BTB Real

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

The idea behind Slate Grocery REIT and BTB 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.