Correlation Between Inhome Prime and Azaria Rental

Can any of the company-specific risk be diversified away by investing in both Inhome Prime and Azaria Rental 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 Inhome Prime and Azaria Rental into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Inhome Prime and Azaria Rental

-0.57

Correlation Coefficient

Inhome Prime  Azaria Rental

Excellent diversification

The 3 months correlation between Inhome and Azaria is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Inhome Prime Properties and Azaria Rental SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azaria Rental SOCIMI and Inhome Prime 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 Inhome Prime Properties are associated (or correlated) with Azaria Rental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azaria Rental SOCIMI has no effect on the direction of Inhome Prime i.e., Inhome Prime and Azaria Rental go up and down completely randomly.

Pair Corralation between Inhome Prime and Azaria Rental

Assuming the 90 days trading horizon Inhome Prime Properties is expected to generate 1.96 times more return on investment than Azaria Rental. However, Inhome Prime is 1.96 times more volatile than Azaria Rental SOCIMI. It trades about 0.12 of its potential returns per unit of risk. Azaria Rental SOCIMI is currently generating about -0.07 per unit of risk. If you would invest  1,000.00  in Inhome Prime Properties on September 1, 2024 and sell it today you would earn a total of  120.00  from holding Inhome Prime Properties or generate 12.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Inhome Prime Properties  vs.  Azaria Rental SOCIMI

Inhome Prime Properties

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inhome Prime Properties are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Inhome Prime may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Azaria Rental SOCIMI

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Inhome Prime and Azaria Rental

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

The idea behind Inhome Prime Properties and Azaria Rental SOCIMI 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 CEOs Directory module to screen CEOs from public companies around the world.