Correlation Between Slate Grocery and Firm Capital

Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Firm Capital 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 Firm Capital 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 Firm Capital Mortgage, you can compare the effects of market volatilities on Slate Grocery and Firm Capital 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 Firm Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Firm Capital.

Diversification Opportunities for Slate Grocery and Firm Capital

0.69

Correlation Coefficient

Slate Grocery  Firm Capital

Poor diversification

The 3 months correlation between Slate and Firm is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Firm Capital Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firm Capital Mortgage 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 Firm Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firm Capital Mortgage has no effect on the direction of Slate Grocery i.e., Slate Grocery and Firm Capital go up and down completely randomly.

Pair Corralation between Slate Grocery and Firm Capital

Assuming the 90 days trading horizon Slate Grocery is expected to generate 1.09 times less return on investment than Firm Capital. In addition to that, Slate Grocery is 1.7 times more volatile than Firm Capital Mortgage. It trades about 0.13 of its total potential returns per unit of risk. Firm Capital Mortgage is currently generating about 0.25 per unit of volatility. If you would invest  1,141  in Firm Capital Mortgage on April 20, 2025 and sell it today you would earn a total of  93.00  from holding Firm Capital Mortgage or generate 8.15% 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.  Firm Capital Mortgage

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.

Firm Capital Mortgage

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Firm Capital Mortgage are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Firm Capital may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Slate Grocery and Firm Capital

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

The idea behind Slate Grocery REIT and Firm Capital Mortgage 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..