Correlation Between CENTURIA OFFICE and Check Point
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on CENTURIA OFFICE and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Check Point.
Diversification Opportunities for CENTURIA OFFICE and Check Point
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CENTURIA and Check is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Check Point go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Check Point
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 3.76 times less return on investment than Check Point. In addition to that, CENTURIA OFFICE is 1.04 times more volatile than Check Point Software. It trades about 0.02 of its total potential returns per unit of risk. Check Point Software is currently generating about 0.08 per unit of volatility. If you would invest 11,500 in Check Point Software on August 31, 2024 and sell it today you would earn a total of 5,725 from holding Check Point Software or generate 49.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Check Point Software
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Check Point Software |
CENTURIA OFFICE and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Check Point
The main advantage of trading using opposite CENTURIA OFFICE and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| CENTURIA OFFICE vs. MHP Hotel AG | CENTURIA OFFICE vs. Playa Hotels Resorts | CENTURIA OFFICE vs. InterContinental Hotels Group | CENTURIA OFFICE vs. Meli Hotels International |
| Check Point vs. CVW CLEANTECH INC | Check Point vs. NorAm Drilling AS | Check Point vs. BORR DRILLING NEW | Check Point vs. Clean Energy Fuels |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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