Correlation Between CENTURIA OFFICE and Take Two
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Take Two 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 Take Two 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 Take Two Interactive Software, you can compare the effects of market volatilities on CENTURIA OFFICE and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Take Two.
Diversification Opportunities for CENTURIA OFFICE and Take Two
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CENTURIA and Take is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Take Two go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Take Two
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 2.01 times less return on investment than Take Two. But when comparing it to its historical volatility, CENTURIA OFFICE REIT is 1.11 times less risky than Take Two. It trades about 0.05 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14,894 in Take Two Interactive Software on September 1, 2024 and sell it today you would earn a total of 3,004 from holding Take Two Interactive Software or generate 20.17% 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. Take Two Interactive Software
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Take Two Interactive |
CENTURIA OFFICE and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Take Two
The main advantage of trading using opposite CENTURIA OFFICE and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| CENTURIA OFFICE vs. Rayonier Advanced Materials | CENTURIA OFFICE vs. EMBARK EDUCATION LTD | CENTURIA OFFICE vs. Mitsubishi Materials | CENTURIA OFFICE vs. TAL Education Group |
| Take Two vs. Nintendo Co | Take Two vs. Sea Limited | Take Two vs. Superior Plus Corp | Take Two vs. NMI Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |