Correlation Between Choice Properties and Primaris Real

Can any of the company-specific risk be diversified away by investing in both Choice Properties and Primaris 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 Choice Properties and Primaris Real 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 Primaris Real Estate, you can compare the effects of market volatilities on Choice Properties and Primaris 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 Choice Properties with a short position of Primaris Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choice Properties and Primaris Real.

Diversification Opportunities for Choice Properties and Primaris Real

-0.17

Correlation Coefficient

Choice Properties  Primaris Real

Good diversification

The 3 months correlation between Choice and Primaris is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Choice Properties Real and Primaris Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Real Estate 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 Primaris Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Real Estate has no effect on the direction of Choice Properties i.e., Choice Properties and Primaris Real go up and down completely randomly.

Pair Corralation between Choice Properties and Primaris Real

Assuming the 90 days horizon Choice Properties Real is not expected to generate positive returns. Moreover, Choice Properties is 2.24 times more volatile than Primaris Real Estate. It trades away all of its potential returns to assume current level of volatility. Primaris Real Estate is currently generating about 0.0 per unit of risk. If you would invest  1,075  in Choice Properties Real on June 28, 2025 and sell it today you would lose (15.00) from holding Choice Properties Real or give up 1.4% of portfolio value over 90 days.

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

Choice Properties Real  vs.  Primaris Real Estate

Choice Properties Real

Risk-Adjusted Performance

Weakest

Over the last 90 days Choice Properties Real has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Choice Properties is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Primaris Real Estate

Risk-Adjusted Performance

Weakest

Over the last 90 days Primaris Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Primaris Real is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Choice Properties and Primaris Real

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

The idea behind Choice Properties Real and Primaris Real Estate 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.