Correlation Between CENTURIA OFFICE and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and GLG LIFE 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 GLG LIFE 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 GLG LIFE TECH, you can compare the effects of market volatilities on CENTURIA OFFICE and GLG LIFE 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 GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and GLG LIFE.
Diversification Opportunities for CENTURIA OFFICE and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CENTURIA and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH 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 GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and GLG LIFE go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and GLG LIFE
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to under-perform the GLG LIFE. But the stock apears to be less risky and, when comparing its historical volatility, CENTURIA OFFICE REIT is 27.45 times less risky than GLG LIFE. The stock trades about -0.01 of its potential returns per unit of risk. The GLG LIFE TECH is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.75 in GLG LIFE TECH on October 25, 2024 and sell it today you would earn a total of 0.25 from holding GLG LIFE TECH or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. GLG LIFE TECH
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| GLG LIFE TECH |
CENTURIA OFFICE and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and GLG LIFE
The main advantage of trading using opposite CENTURIA OFFICE and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| CENTURIA OFFICE vs. Allegheny Technologies Incorporated | CENTURIA OFFICE vs. AGRICULTBK HADR25 YC | CENTURIA OFFICE vs. Easy Software AG | CENTURIA OFFICE vs. Hitachi Construction Machinery |
| GLG LIFE vs. Corporate Travel Management | GLG LIFE vs. Japan Tobacco | GLG LIFE vs. Waste Management | GLG LIFE vs. Platinum Investment Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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