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Should You Be Concerned About H&R Real Estate Investment Trust’s (TSE:HR.UN) Historical Volatility? – Simply Wall St

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Anyone researching H&R Real Estate Investment Trust (TSE:HR.UN) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.

Some stocks are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said ‘volatility is far from synonymous with risk’ in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

See our latest analysis for H&R Real Estate Investment Trust

What we can learn from HR.UN’s beta value

Zooming in on H&R Real Estate Investment Trust, we see it has a five year beta of 1.73. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, H&R Real Estate Investment Trust shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it’s also important to consider whether H&R Real Estate Investment Trust is growing earnings and revenue. You can take a look for yourself, below.

TSX:HR.UN Income Statement April 26th 2020

Could HR.UN’s size cause it to be more volatile?

With a market capitalisation of CA$2.7b, H&R Real Estate Investment Trust is a small cap stock. However, it is big enough to catch the attention of professional investors. It’s not particularly surprising that it has a higher beta than the overall market. That’s because it takes less money to influence the share price of a smaller company, than a bigger company.

What this means for you:

Beta only tells us that the H&R Real Estate Investment Trust share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there’s plenty more to learn. In order to fully understand whether HR.UN is a good investment for you, we also need to consider important company-specific fundamentals such as H&R Real Estate Investment Trust’s financial health and performance track record. I urge you to continue your research by taking a look at the following:

  1. Future Outlook: What are well-informed industry analysts predicting for HR.UN’s future growth? Take a look at our free research report of analyst consensus for HR.UN’s outlook.
  2. Past Track Record: Has HR.UN been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of HR.UN’s historicals for more clarity.
  3. Other Interesting Stocks: It’s worth checking to see how HR.UN measures up against other companies on valuation. You could start with this free list of prospective options.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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Why sound governance key to pursuing investment returns – Wealth Professional

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The report is linked to Mercer’s ongoing multi-year Transformational Investment collaboration with the World Economic Forum (WEF). The series explores investment and governance practices for global systemic risks.

Through this collaboration, the WEF and Mercer had provided institutional investors with a six-step governance and decision-making framework to pursue attractive risk-adjusted returns. The principles were:

  • Understanding the overall impact on the funding entity, objectives, and beneficiaries;
  • Collaborating with similarly situated organizations who are concerned about the same risks and opportunities;
  • Designing governance, policies, delegation, and accountabilities for material systemic risks;
  • Investing to manage the portfolio’s exposure to the global systemic risk;
  • Transforming through driving investment strategy that aims to deliver change; and
  • Monitoring and revisiting – applying learnings to improve policies and processes.

Given this framework, Mercer’s paper rolled out two objectives for institutional investors:

  • Evaluating governance strategies developed to address systemic risks, in terms of addressing the COVID-19 pandemic-driven market crisis; and
  • Considering practical investment actions by long-term investors that support economic recovery and generating attractive risk-adjusted returns. Investments that support economic recovery and resurgence are considered “transformational.”

“As illustrated by the COVID-19 pandemic, our economy, society, and planet face numerous long-term, global systemic risks, which need to be mitigated,” said Rich Nuzum, global president of Mercer’s Investments and Retirement business. “Institutional investors have the ability to respond to these challenges and continue to seek positive investment outcomes, while mitigating the effect of these systemic risks. This is especially true when it comes to governance, as sound and robust investment practices can benefit the economy and broader society through periods of market volatility and economic uncertainty.”

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – Yahoo Canada Finance

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI
Signage at a Volkswagen dealership is seen in London, Britain

(Reuters) – German automaker Volkswagen AG <VOWG_p.DE> has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – TheChronicleHerald.ca

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(Reuters) – German automaker Volkswagen AG has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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