Correlation Between Choice Properties and Dividend

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

By analyzing existing cross correlation between Choice Properties Real and Dividend 15 Split, you can compare the effects of market volatilities on Choice Properties and Dividend 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 Choice Properties with a short position of Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choice Properties and Dividend.

Diversification Opportunities for Choice Properties and Dividend

0.75

Correlation Coefficient

Choice Properties  Dividend

Poor diversification

The 3 months correlation between Choice and Dividend is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Choice Properties Real and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split and Choice Properties 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 Choice Properties Real are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Choice Properties i.e., Choice Properties and Dividend go up and down completely randomly.

Pair Corralation between Choice Properties and Dividend

Assuming the 90 days trading horizon Choice Properties is expected to generate 35.2 times less return on investment than Dividend. But when comparing it to its historical volatility, Choice Properties Real is 1.14 times less risky than Dividend. It trades about 0.01 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  585.00  in Dividend 15 Split on March 23, 2025 and sell it today you would earn a total of  25.00  from holding Dividend 15 Split or generate 4.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Choice Properties Real  vs.  Dividend 15 Split

Choice Properties Real

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Choice Properties Real are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Choice Properties may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Dividend 15 Split

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dividend displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Choice Properties and Dividend

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

The idea behind Choice Properties Real and Dividend 15 Split 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.