Correlation Between Aew Real and Global Real
Can any of the company-specific risk be diversified away by investing in both Aew Real and Global 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 Aew Real and Global Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aew Real Estate and Global Real Estate, you can compare the effects of market volatilities on Aew Real and Global 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 Aew Real with a short position of Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and Global Real.
Diversification Opportunities for Aew Real and Global Real
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aew and Global is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate and Aew 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 Aew Real Estate are associated (or correlated) with Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of Aew Real i.e., Aew Real and Global Real go up and down completely randomly.
Pair Corralation between Aew Real and Global Real
Assuming the 90 days horizon Aew Real is expected to generate 1.22 times less return on investment than Global Real. In addition to that, Aew Real is 1.04 times more volatile than Global Real Estate. It trades about 0.12 of its total potential returns per unit of risk. Global Real Estate is currently generating about 0.15 per unit of volatility. If you would invest 2,859 in Global Real Estate on April 25, 2025 and sell it today you would earn a total of 183.00 from holding Global Real Estate or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aew Real Estate vs. Global Real Estate
Performance |
| Timeline |
| Aew Real Estate |
| Global Real Estate |
Aew Real and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and Global Real
The main advantage of trading using opposite Aew Real and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real position performs unexpectedly, Global 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 Global Real will offset losses from the drop in Global Real's long position.| Aew Real vs. Cohen Steers Real | Aew Real vs. Commonwealth Real Estate | Aew Real vs. Dunham Real Estate | Aew Real vs. Franklin Real Estate |
| Global Real vs. Rationalpier 88 Convertible | Global Real vs. Columbia Convertible Securities | Global Real vs. Absolute Convertible Arbitrage | Global Real vs. Calamos Dynamic Convertible |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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