Correlation Between Ascott Residence and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both Ascott Residence and Dream Industrial 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 Ascott Residence and Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascott Residence Trust and Dream Industrial Real, you can compare the effects of market volatilities on Ascott Residence and Dream Industrial 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 Ascott Residence with a short position of Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascott Residence and Dream Industrial.
Diversification Opportunities for Ascott Residence and Dream Industrial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ascott and Dream is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ascott Residence Trust and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real and Ascott Residence 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 Ascott Residence Trust are associated (or correlated) with Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Ascott Residence i.e., Ascott Residence and Dream Industrial go up and down completely randomly.
Pair Corralation between Ascott Residence and Dream Industrial
Assuming the 90 days horizon Ascott Residence Trust is expected to under-perform the Dream Industrial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ascott Residence Trust is 1.17 times less risky than Dream Industrial. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Dream Industrial Real is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 890.00 in Dream Industrial Real on September 12, 2025 and sell it today you would lose (34.00) from holding Dream Industrial Real or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ascott Residence Trust vs. Dream Industrial Real
Performance |
| Timeline |
| Ascott Residence Trust |
| Dream Industrial Real |
Ascott Residence and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascott Residence and Dream Industrial
The main advantage of trading using opposite Ascott Residence and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascott Residence position performs unexpectedly, Dream Industrial 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 Dream Industrial will offset losses from the drop in Dream Industrial's long position.| Ascott Residence vs. Dream Industrial Real | Ascott Residence vs. Lend Lease Group | Ascott Residence vs. Lend Lease Group | Ascott Residence vs. Hang Lung Group |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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