Correlation Between CENTURIA OFFICE and SECOM
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and SECOM 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 SECOM 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 SECOM LTD, you can compare the effects of market volatilities on CENTURIA OFFICE and SECOM 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 SECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and SECOM.
Diversification Opportunities for CENTURIA OFFICE and SECOM
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CENTURIA and SECOM is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and SECOM LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECOM LTD 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 SECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECOM LTD has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and SECOM go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and SECOM
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to under-perform the SECOM. In addition to that, CENTURIA OFFICE is 1.44 times more volatile than SECOM LTD. It trades about -0.08 of its total potential returns per unit of risk. SECOM LTD is currently generating about 0.01 per unit of volatility. If you would invest 3,200 in SECOM LTD on November 8, 2024 and sell it today you would earn a total of 0.00 from holding SECOM LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. SECOM LTD
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| SECOM LTD |
CENTURIA OFFICE and SECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and SECOM
The main advantage of trading using opposite CENTURIA OFFICE and SECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, SECOM 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 SECOM will offset losses from the drop in SECOM's long position.| CENTURIA OFFICE vs. Shenandoah Telecommunications | CENTURIA OFFICE vs. Highlight Communications AG | CENTURIA OFFICE vs. Easy Software AG | CENTURIA OFFICE vs. Charter Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |