Correlation Between CENTURIA OFFICE and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Digilife Technologies 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 Digilife Technologies 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 Digilife Technologies Limited, you can compare the effects of market volatilities on CENTURIA OFFICE and Digilife Technologies 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 Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Digilife Technologies.
Diversification Opportunities for CENTURIA OFFICE and Digilife Technologies
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CENTURIA and Digilife is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies 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 Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Digilife Technologies go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Digilife Technologies
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.26 times more return on investment than Digilife Technologies. However, CENTURIA OFFICE REIT is 3.92 times less risky than Digilife Technologies. It trades about 0.06 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about 0.0 per unit of risk. If you would invest 71.00 in CENTURIA OFFICE REIT on August 29, 2024 and sell it today you would earn a total of 1.00 from holding CENTURIA OFFICE REIT or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Digilife Technologies Limited
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Digilife Technologies |
CENTURIA OFFICE and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Digilife Technologies
The main advantage of trading using opposite CENTURIA OFFICE and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
| Digilife Technologies vs. T Mobile | Digilife Technologies vs. ATT Inc | Digilife Technologies vs. Deutsche Telekom AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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