Correlation Between CENTURIA OFFICE and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Goldman Sachs 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 Goldman Sachs 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 The Goldman Sachs, you can compare the effects of market volatilities on CENTURIA OFFICE and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Goldman Sachs.
Diversification Opportunities for CENTURIA OFFICE and Goldman Sachs
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CENTURIA and Goldman is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Goldman Sachs go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Goldman Sachs
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.81 times more return on investment than Goldman Sachs. However, CENTURIA OFFICE REIT is 1.23 times less risky than Goldman Sachs. It trades about 0.12 of its potential returns per unit of risk. The Goldman Sachs is currently generating about -0.02 per unit of risk. If you would invest 67.00 in CENTURIA OFFICE REIT on November 27, 2024 and sell it today you would earn a total of 2.00 from holding CENTURIA OFFICE REIT or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. The Goldman Sachs
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Goldman Sachs |
CENTURIA OFFICE and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Goldman Sachs
The main advantage of trading using opposite CENTURIA OFFICE and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| CENTURIA OFFICE vs. AGRICULTBK HADR25 YC | CENTURIA OFFICE vs. JAPAN AIRLINES | CENTURIA OFFICE vs. Sumitomo Mitsui Construction | CENTURIA OFFICE vs. Nufarm Limited |
| Goldman Sachs vs. Data Modul AG | Goldman Sachs vs. China Communications Construction | Goldman Sachs vs. COMPUTER MODELLING | Goldman Sachs vs. Ribbon Communications |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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