Correlation Between CENTURIA OFFICE and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Ramsay Health 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 Ramsay Health 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 Ramsay Health Care, you can compare the effects of market volatilities on CENTURIA OFFICE and Ramsay Health 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 Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Ramsay Health.
Diversification Opportunities for CENTURIA OFFICE and Ramsay Health
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CENTURIA and Ramsay is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Ramsay Health go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Ramsay Health
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 1.17 times more return on investment than Ramsay Health. However, CENTURIA OFFICE is 1.17 times more volatile than Ramsay Health Care. It trades about 0.01 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.1 per unit of risk. If you would invest 68.00 in CENTURIA OFFICE REIT on November 4, 2024 and sell it today you would earn a total of 0.00 from holding CENTURIA OFFICE REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Ramsay Health Care
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Ramsay Health Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CENTURIA OFFICE and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Ramsay Health
The main advantage of trading using opposite CENTURIA OFFICE and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| CENTURIA OFFICE vs. MAANSHAN IRON H | CENTURIA OFFICE vs. Mount Gibson Iron | CENTURIA OFFICE vs. CeoTronics AG | CENTURIA OFFICE vs. CARDINAL HEALTH |
| Ramsay Health vs. H2O Retailing | Ramsay Health vs. Tradegate AG Wertpapierhandelsbank | Ramsay Health vs. FLOW TRADERS LTD | Ramsay Health vs. Methode Electronics |
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 Stocks Directory module to find actively traded stocks across global markets.
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