Correlation Between CENTURIA OFFICE and AMAG AUSTRIA
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and AMAG AUSTRIA 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 AMAG AUSTRIA 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 AMAG AUSTRIA M, you can compare the effects of market volatilities on CENTURIA OFFICE and AMAG AUSTRIA 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 AMAG AUSTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and AMAG AUSTRIA.
Diversification Opportunities for CENTURIA OFFICE and AMAG AUSTRIA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CENTURIA and AMAG is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and AMAG AUSTRIA M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG AUSTRIA M 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 AMAG AUSTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG AUSTRIA M has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and AMAG AUSTRIA go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and AMAG AUSTRIA
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.87 times more return on investment than AMAG AUSTRIA. However, CENTURIA OFFICE REIT is 1.15 times less risky than AMAG AUSTRIA. It trades about 0.06 of its potential returns per unit of risk. AMAG AUSTRIA M is currently generating about -0.04 per unit of risk. If you would invest 71.00 in CENTURIA OFFICE REIT on September 5, 2024 and sell it today you would earn a total of 1.00 from holding CENTURIA OFFICE REIT or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. AMAG AUSTRIA M
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| AMAG AUSTRIA M |
CENTURIA OFFICE and AMAG AUSTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and AMAG AUSTRIA
The main advantage of trading using opposite CENTURIA OFFICE and AMAG AUSTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, AMAG AUSTRIA 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 AMAG AUSTRIA will offset losses from the drop in AMAG AUSTRIA's long position.| CENTURIA OFFICE vs. G III Apparel Group | CENTURIA OFFICE vs. MYFAIR GOLD P | CENTURIA OFFICE vs. TITANIUM TRANSPORTGROUP | CENTURIA OFFICE vs. NTG Nordic Transport |
| AMAG AUSTRIA vs. PRECISION DRILLING P | AMAG AUSTRIA vs. Siamgas And Petrochemicals | AMAG AUSTRIA vs. Sanyo Chemical Industries | AMAG AUSTRIA vs. NISSAN CHEMICAL IND |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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