Correlation Between FRASERS PROPERTY and Citycon Oyj
Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and Citycon Oyj 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 FRASERS PROPERTY and Citycon Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRASERS PROPERTY and Citycon Oyj, you can compare the effects of market volatilities on FRASERS PROPERTY and Citycon Oyj 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 FRASERS PROPERTY with a short position of Citycon Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and Citycon Oyj.
Diversification Opportunities for FRASERS PROPERTY and Citycon Oyj
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRASERS and Citycon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and Citycon Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citycon Oyj and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with Citycon Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citycon Oyj has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and Citycon Oyj go up and down completely randomly.
Pair Corralation between FRASERS PROPERTY and Citycon Oyj
Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 0.76 times more return on investment than Citycon Oyj. However, FRASERS PROPERTY is 1.31 times less risky than Citycon Oyj. It trades about 0.15 of its potential returns per unit of risk. Citycon Oyj is currently generating about -0.07 per unit of risk. If you would invest 60.00 in FRASERS PROPERTY on September 1, 2024 and sell it today you would earn a total of 3.00 from holding FRASERS PROPERTY or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRASERS PROPERTY vs. Citycon Oyj
Performance |
| Timeline |
| FRASERS PROPERTY |
| Citycon Oyj |
FRASERS PROPERTY and Citycon Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRASERS PROPERTY and Citycon Oyj
The main advantage of trading using opposite FRASERS PROPERTY and Citycon Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRASERS PROPERTY position performs unexpectedly, Citycon Oyj 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 Citycon Oyj will offset losses from the drop in Citycon Oyj's long position.| FRASERS PROPERTY vs. OPEN HOUSE GROUP | FRASERS PROPERTY vs. Superior Plus Corp | FRASERS PROPERTY vs. NMI Holdings | FRASERS PROPERTY vs. Origin Agritech |
| Citycon Oyj vs. OPEN HOUSE GROUP | Citycon Oyj vs. Superior Plus Corp | Citycon Oyj vs. NMI Holdings | Citycon Oyj vs. Origin Agritech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |