Correlation Between CENTURIA OFFICE and Firan Technology
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Firan Technology 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 CENTURIA OFFICE and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and Firan Technology Group, you can compare the effects of market volatilities on CENTURIA OFFICE and Firan Technology 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 CENTURIA OFFICE with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Firan Technology.
Diversification Opportunities for CENTURIA OFFICE and Firan Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CENTURIA and Firan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and CENTURIA OFFICE 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 CENTURIA OFFICE REIT are associated (or correlated) with Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Firan Technology go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Firan Technology
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 7.71 times less return on investment than Firan Technology. But when comparing it to its historical volatility, CENTURIA OFFICE REIT is 1.5 times less risky than Firan Technology. It trades about 0.02 of its potential returns per unit of risk. Firan Technology Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Firan Technology Group on August 31, 2024 and sell it today you would earn a total of 270.00 from holding Firan Technology Group or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Firan Technology Group
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Firan Technology |
CENTURIA OFFICE and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Firan Technology
The main advantage of trading using opposite CENTURIA OFFICE and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| CENTURIA OFFICE vs. MHP Hotel AG | CENTURIA OFFICE vs. Playa Hotels Resorts | CENTURIA OFFICE vs. InterContinental Hotels Group | CENTURIA OFFICE vs. Meli Hotels International |
| Firan Technology vs. SIEM OFFSHORE NEW | Firan Technology vs. Datadog | Firan Technology vs. SBM OFFSHORE | Firan Technology vs. Hyrican Informationssysteme Aktiengesellschaft |
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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