Correlation Between SFS REAL and LIVINGTRUST MORTGAGE

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

By analyzing existing cross correlation between SFS REAL ESTATE and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on SFS REAL and LIVINGTRUST MORTGAGE 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 SFS REAL with a short position of LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and LIVINGTRUST MORTGAGE.

Diversification Opportunities for SFS REAL and LIVINGTRUST MORTGAGE

-0.24

Correlation Coefficient

SFS REAL  LIVINGTRUST MORTGAGE

Very good diversification

The 3 months correlation between SFS and LIVINGTRUST is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST MORTGAGE BANK and SFS 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 SFS REAL ESTATE are associated (or correlated) with LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of SFS REAL i.e., SFS REAL and LIVINGTRUST MORTGAGE go up and down completely randomly.

Pair Corralation between SFS REAL and LIVINGTRUST MORTGAGE

Assuming the 90 days trading horizon SFS REAL ESTATE is expected to generate 0.56 times more return on investment than LIVINGTRUST MORTGAGE. However, SFS REAL ESTATE is 1.79 times less risky than LIVINGTRUST MORTGAGE. It trades about 0.31 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about -0.17 per unit of risk. If you would invest  24,925  in SFS REAL ESTATE on July 27, 2025 and sell it today you would earn a total of  16,950  from holding SFS REAL ESTATE or generate 68.0% return on investment over 90 days.

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

SFS REAL ESTATE  vs.  LIVINGTRUST MORTGAGE BANK

SFS REAL ESTATE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SFS REAL ESTATE are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, SFS REAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

LIVINGTRUST MORTGAGE BANK

Risk-Adjusted Performance

Weakest

Over the last 90 days LIVINGTRUST MORTGAGE BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SFS REAL and LIVINGTRUST MORTGAGE

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

The idea behind SFS REAL ESTATE and LIVINGTRUST MORTGAGE BANK 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.