Correlation Between CENTURIA OFFICE and SEGRO Plc
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and SEGRO Plc 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 SEGRO Plc 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 SEGRO Plc, you can compare the effects of market volatilities on CENTURIA OFFICE and SEGRO Plc 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 SEGRO Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and SEGRO Plc.
Diversification Opportunities for CENTURIA OFFICE and SEGRO Plc
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CENTURIA and SEGRO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and SEGRO Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEGRO Plc 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 SEGRO Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEGRO Plc has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and SEGRO Plc go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and SEGRO Plc
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 9.53 times less return on investment than SEGRO Plc. But when comparing it to its historical volatility, CENTURIA OFFICE REIT is 1.4 times less risky than SEGRO Plc. It trades about 0.0 of its potential returns per unit of risk. SEGRO Plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 797.00 in SEGRO Plc on September 12, 2024 and sell it today you would earn a total of 78.00 from holding SEGRO Plc or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. SEGRO Plc
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| SEGRO Plc |
CENTURIA OFFICE and SEGRO Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and SEGRO Plc
The main advantage of trading using opposite CENTURIA OFFICE and SEGRO Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, SEGRO Plc 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 SEGRO Plc will offset losses from the drop in SEGRO Plc's long position.| CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
| SEGRO Plc vs. GEELY AUTOMOBILE | SEGRO Plc vs. CARSALESCOM | SEGRO Plc vs. CarsalesCom | SEGRO Plc vs. CENTURIA OFFICE REIT |
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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