Correlation Between CENTURIA OFFICE and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and JD SPORTS 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 JD SPORTS 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 JD SPORTS FASH, you can compare the effects of market volatilities on CENTURIA OFFICE and JD SPORTS 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 JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and JD SPORTS.
Diversification Opportunities for CENTURIA OFFICE and JD SPORTS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CENTURIA and 9JD is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH 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 JD SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD SPORTS FASH has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and JD SPORTS go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and JD SPORTS
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.36 times more return on investment than JD SPORTS. However, CENTURIA OFFICE REIT is 2.79 times less risky than JD SPORTS. It trades about 0.01 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.08 per unit of risk. If you would invest 68.00 in CENTURIA OFFICE REIT on November 6, 2024 and sell it today you would earn a total of 0.00 from holding CENTURIA OFFICE REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. JD SPORTS FASH
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| JD SPORTS FASH |
CENTURIA OFFICE and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and JD SPORTS
The main advantage of trading using opposite CENTURIA OFFICE and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, JD SPORTS 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 JD SPORTS will offset losses from the drop in JD SPORTS's long position.| CENTURIA OFFICE vs. CN MODERN DAIRY | CENTURIA OFFICE vs. Air Transport Services | CENTURIA OFFICE vs. Texas Roadhouse | CENTURIA OFFICE vs. Axfood AB |
| JD SPORTS vs. Eurasia Mining Plc | JD SPORTS vs. Endeavour Mining PLC | JD SPORTS vs. MUTUIONLINE | JD SPORTS vs. Yanzhou Coal Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |