Correlation Between CENTURIA OFFICE and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on CENTURIA OFFICE and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and COSMOSTEEL HLDGS.
Diversification Opportunities for CENTURIA OFFICE and COSMOSTEEL HLDGS
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CENTURIA and COSMOSTEEL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and COSMOSTEEL HLDGS
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 1.54 times more return on investment than COSMOSTEEL HLDGS. However, CENTURIA OFFICE is 1.54 times more volatile than COSMOSTEEL HLDGS. It trades about 0.07 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about -0.09 per unit of risk. If you would invest 63.00 in CENTURIA OFFICE REIT on October 17, 2024 and sell it today you would earn a total of 2.00 from holding CENTURIA OFFICE REIT or generate 3.17% 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. COSMOSTEEL HLDGS
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| COSMOSTEEL HLDGS |
CENTURIA OFFICE and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and COSMOSTEEL HLDGS
The main advantage of trading using opposite CENTURIA OFFICE and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS'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 |
| COSMOSTEEL HLDGS vs. Luckin Coffee | COSMOSTEEL HLDGS vs. CENTURIA OFFICE REIT | COSMOSTEEL HLDGS vs. Charter Communications | COSMOSTEEL HLDGS vs. MAVEN WIRELESS SWEDEN |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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