Correlation Between CENTURIA OFFICE and TOTAL BANGUN
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and TOTAL BANGUN 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 TOTAL BANGUN 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 TOTAL BANGUN PERSAD, you can compare the effects of market volatilities on CENTURIA OFFICE and TOTAL BANGUN 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 TOTAL BANGUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and TOTAL BANGUN.
Diversification Opportunities for CENTURIA OFFICE and TOTAL BANGUN
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CENTURIA and TOTAL is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and TOTAL BANGUN PERSAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL BANGUN PERSAD 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 TOTAL BANGUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL BANGUN PERSAD has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and TOTAL BANGUN go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and TOTAL BANGUN
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.19 times more return on investment than TOTAL BANGUN. However, CENTURIA OFFICE REIT is 5.25 times less risky than TOTAL BANGUN. It trades about 0.11 of its potential returns per unit of risk. TOTAL BANGUN PERSAD is currently generating about -0.04 per unit of risk. If you would invest 70.00 in CENTURIA OFFICE REIT on August 30, 2024 and sell it today you would earn a total of 2.00 from holding CENTURIA OFFICE REIT or generate 2.86% 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. TOTAL BANGUN PERSAD
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| TOTAL BANGUN PERSAD |
CENTURIA OFFICE and TOTAL BANGUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and TOTAL BANGUN
The main advantage of trading using opposite CENTURIA OFFICE and TOTAL BANGUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, TOTAL BANGUN 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 TOTAL BANGUN will offset losses from the drop in TOTAL BANGUN's long position.| CENTURIA OFFICE vs. Media and Games | CENTURIA OFFICE vs. ADRIATIC METALS LS 013355 | CENTURIA OFFICE vs. Scientific Games | CENTURIA OFFICE vs. GameStop Corp |
| TOTAL BANGUN vs. CENTURIA OFFICE REIT | TOTAL BANGUN vs. Infrastrutture Wireless Italiane | TOTAL BANGUN vs. Carsales | TOTAL BANGUN vs. Salesforce |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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