Correlation Between SQUIRREL MEDIA and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and CENTURIA OFFICE 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 SQUIRREL MEDIA and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on SQUIRREL MEDIA and CENTURIA OFFICE 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 SQUIRREL MEDIA with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and CENTURIA OFFICE.
Diversification Opportunities for SQUIRREL MEDIA and CENTURIA OFFICE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SQUIRREL and CENTURIA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and CENTURIA OFFICE
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 0.87 times more return on investment than CENTURIA OFFICE. However, SQUIRREL MEDIA SA is 1.15 times less risky than CENTURIA OFFICE. It trades about 0.1 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about -0.02 per unit of risk. If you would invest 125.00 in SQUIRREL MEDIA SA on October 30, 2024 and sell it today you would earn a total of 9.00 from holding SQUIRREL MEDIA SA or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| CENTURIA OFFICE REIT |
SQUIRREL MEDIA and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and CENTURIA OFFICE
The main advantage of trading using opposite SQUIRREL MEDIA and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| SQUIRREL MEDIA vs. Charter Communications | SQUIRREL MEDIA vs. Warner Music Group | SQUIRREL MEDIA vs. Superior Plus Corp | SQUIRREL MEDIA vs. Origin Agritech |
| CENTURIA OFFICE vs. British American Tobacco | CENTURIA OFFICE vs. Mount Gibson Iron | CENTURIA OFFICE vs. MAANSHAN IRON H | CENTURIA OFFICE vs. Tianjin Capital Environmental |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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