Correlation Between CENTURIA OFFICE and Freenet AG
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By analyzing existing cross correlation between CENTURIA OFFICE REIT and freenet AG, you can compare the effects of market volatilities on CENTURIA OFFICE and Freenet AG 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 Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Freenet AG.
Diversification Opportunities for CENTURIA OFFICE and Freenet AG
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CENTURIA and Freenet is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG 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 Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Freenet AG go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Freenet AG
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 5.37 times less return on investment than Freenet AG. In addition to that, CENTURIA OFFICE is 1.6 times more volatile than freenet AG. It trades about 0.01 of its total potential returns per unit of risk. freenet AG is currently generating about 0.09 per unit of volatility. If you would invest 2,033 in freenet AG on December 4, 2024 and sell it today you would earn a total of 1,151 from holding freenet AG or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. freenet AG
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| freenet AG |
CENTURIA OFFICE and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Freenet AG
The main advantage of trading using opposite CENTURIA OFFICE and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.| CENTURIA OFFICE vs. BioNTech SE | CENTURIA OFFICE vs. STORE ELECTRONIC | CENTURIA OFFICE vs. Nanjing Panda Electronics | CENTURIA OFFICE vs. SOFI TECHNOLOGIES |
| Freenet AG vs. AEON METALS LTD | Freenet AG vs. CORNISH METALS INC | Freenet AG vs. Forsys Metals Corp | Freenet AG vs. Transport International Holdings |
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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