Correlation Between CENTURIA OFFICE and Kaufman Broad
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Kaufman Broad 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 Kaufman Broad 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 Kaufman Broad SA, you can compare the effects of market volatilities on CENTURIA OFFICE and Kaufman Broad 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 Kaufman Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Kaufman Broad.
Diversification Opportunities for CENTURIA OFFICE and Kaufman Broad
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CENTURIA and Kaufman is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Kaufman Broad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Broad SA 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 Kaufman Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Broad SA has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Kaufman Broad go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Kaufman Broad
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to under-perform the Kaufman Broad. In addition to that, CENTURIA OFFICE is 1.12 times more volatile than Kaufman Broad SA. It trades about -0.03 of its total potential returns per unit of risk. Kaufman Broad SA is currently generating about -0.03 per unit of volatility. If you would invest 3,190 in Kaufman Broad SA on October 18, 2024 and sell it today you would lose (165.00) from holding Kaufman Broad SA or give up 5.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Kaufman Broad SA
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Kaufman Broad SA |
CENTURIA OFFICE and Kaufman Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Kaufman Broad
The main advantage of trading using opposite CENTURIA OFFICE and Kaufman Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Kaufman Broad 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 Kaufman Broad will offset losses from the drop in Kaufman Broad's long position.| CENTURIA OFFICE vs. SOEDER SPORTFISKE AB | CENTURIA OFFICE vs. COLUMBIA SPORTSWEAR | CENTURIA OFFICE vs. PARKEN Sport Entertainment | CENTURIA OFFICE vs. MHP Hotel AG |
| Kaufman Broad vs. DATAGROUP SE | Kaufman Broad vs. BROADWIND ENRGY | Kaufman Broad vs. TITANIUM TRANSPORTGROUP | Kaufman Broad vs. Northern Data AG |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |