Correlation Between CENTURIA OFFICE and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on CENTURIA OFFICE and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and XLMedia PLC.
Diversification Opportunities for CENTURIA OFFICE and XLMedia PLC
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CENTURIA and XLMedia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and XLMedia PLC go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and XLMedia PLC
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to under-perform the XLMedia PLC. But the stock apears to be less risky and, when comparing its historical volatility, CENTURIA OFFICE REIT is 2.24 times less risky than XLMedia PLC. The stock trades about 0.0 of its potential returns per unit of risk. The XLMedia PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13.00 in XLMedia PLC on September 13, 2024 and sell it today you would earn a total of 1.00 from holding XLMedia PLC or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. XLMedia PLC
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| XLMedia PLC |
CENTURIA OFFICE and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and XLMedia PLC
The main advantage of trading using opposite CENTURIA OFFICE and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
| XLMedia PLC vs. Tencent Holdings | XLMedia PLC vs. Superior Plus Corp | XLMedia PLC vs. SIVERS SEMICONDUCTORS AB | XLMedia PLC vs. NorAm Drilling AS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |