Correlation Between CENTURIA OFFICE and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on CENTURIA OFFICE and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Lenox Pasifik.
Diversification Opportunities for CENTURIA OFFICE and Lenox Pasifik
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CENTURIA and Lenox is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Lenox Pasifik go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Lenox Pasifik
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 471.35 times less return on investment than Lenox Pasifik. But when comparing it to its historical volatility, CENTURIA OFFICE REIT is 18.76 times less risky than Lenox Pasifik. It trades about 0.0 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Lenox Pasifik Investama on October 9, 2024 and sell it today you would earn a total of 0.20 from holding Lenox Pasifik Investama or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Lenox Pasifik Investama
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Lenox Pasifik Investama |
CENTURIA OFFICE and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Lenox Pasifik
The main advantage of trading using opposite CENTURIA OFFICE and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| CENTURIA OFFICE vs. EIDESVIK OFFSHORE NK | CENTURIA OFFICE vs. Haier Smart Home | CENTURIA OFFICE vs. The Home Depot | CENTURIA OFFICE vs. BW OFFSHORE LTD |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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