Correlation Between Forum Real and Access Capital
Can any of the company-specific risk be diversified away by investing in both Forum Real and Access 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 Forum Real and Access Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Real Estate and Access Capital Munity, you can compare the effects of market volatilities on Forum Real and Access 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 Forum Real with a short position of Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Access Capital.
Diversification Opportunities for Forum Real and Access Capital
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Forum and Access is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Forum Real Estate and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Forum 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 Forum Real Estate are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Forum Real i.e., Forum Real and Access Capital go up and down completely randomly.
Pair Corralation between Forum Real and Access Capital
Assuming the 90 days horizon Forum Real Estate is expected to generate 0.18 times more return on investment than Access Capital. However, Forum Real Estate is 5.52 times less risky than Access Capital. It trades about 0.93 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.07 per unit of risk. If you would invest 940.00 in Forum Real Estate on April 12, 2025 and sell it today you would earn a total of 35.00 from holding Forum Real Estate or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Real Estate vs. Access Capital Munity
Performance |
| Timeline |
| Forum Real Estate |
| Access Capital Munity |
Forum Real and Access Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Access Capital
The main advantage of trading using opposite Forum Real and Access Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Real position performs unexpectedly, Access 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 Access Capital will offset losses from the drop in Access Capital's long position.| Forum Real vs. Gabelli Global Financial | Forum Real vs. John Hancock Financial | Forum Real vs. Transamerica Financial Life | Forum Real vs. Vanguard Financials Index |
| Access Capital vs. Lsv Small Cap | Access Capital vs. Pace Smallmedium Value | Access Capital vs. T Rowe Price | Access Capital vs. Fpa Queens Road |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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