Correlation Between IREIT MarketVector and Fundamental Income

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

By analyzing existing cross correlation between iREIT MarketVector and Fundamental Income Net, you can compare the effects of market volatilities on IREIT MarketVector and Fundamental Income 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 IREIT MarketVector with a short position of Fundamental Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of IREIT MarketVector and Fundamental Income.

Diversification Opportunities for IREIT MarketVector and Fundamental Income

0.78

Correlation Coefficient

IREIT MarketVector  Fundamental Income

Poor diversification

The 3 months correlation between IREIT and Fundamental is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding iREIT MarketVector and Fundamental Income Net in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Income Net and IREIT MarketVector 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 iREIT MarketVector are associated (or correlated) with Fundamental Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Income Net has no effect on the direction of IREIT MarketVector i.e., IREIT MarketVector and Fundamental Income go up and down completely randomly.

Pair Corralation between IREIT MarketVector and Fundamental Income

Given the investment horizon of 90 days iREIT MarketVector is expected to generate 1.27 times more return on investment than Fundamental Income. However, IREIT MarketVector is 1.27 times more volatile than Fundamental Income Net. It trades about 0.1 of its potential returns per unit of risk. Fundamental Income Net is currently generating about 0.02 per unit of risk. If you would invest  1,781  in iREIT MarketVector on April 30, 2025 and sell it today you would earn a total of  117.00  from holding iREIT MarketVector or generate 6.57% return on investment over 90 days.

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

iREIT MarketVector  vs.  Fundamental Income Net

iREIT MarketVector

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iREIT MarketVector are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, IREIT MarketVector may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Fundamental Income Net

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fundamental Income Net are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Fundamental Income is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with IREIT MarketVector and Fundamental Income

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

The idea behind iREIT MarketVector and Fundamental Income Net 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 Transaction History module to view history of all your transactions and understand their impact on performance.