Correlation Between CITY OFFICE and CHAROEN POKPHAND
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and CHAROEN POKPHAND 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 CITY OFFICE and CHAROEN POKPHAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and CHAROEN POKPHAND, you can compare the effects of market volatilities on CITY OFFICE and CHAROEN POKPHAND 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 CITY OFFICE with a short position of CHAROEN POKPHAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and CHAROEN POKPHAND.
Diversification Opportunities for CITY OFFICE and CHAROEN POKPHAND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITY and CHAROEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and CHAROEN POKPHAND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAROEN POKPHAND and CITY 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 CITY OFFICE REIT are associated (or correlated) with CHAROEN POKPHAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAROEN POKPHAND has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and CHAROEN POKPHAND go up and down completely randomly.
Pair Corralation between CITY OFFICE and CHAROEN POKPHAND
If you would invest (100.00) in CHAROEN POKPHAND on October 29, 2024 and sell it today you would earn a total of 100.00 from holding CHAROEN POKPHAND or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. CHAROEN POKPHAND
Performance |
| Timeline |
| CITY OFFICE REIT |
| CHAROEN POKPHAND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CITY OFFICE and CHAROEN POKPHAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and CHAROEN POKPHAND
The main advantage of trading using opposite CITY OFFICE and CHAROEN POKPHAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, CHAROEN POKPHAND 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 CHAROEN POKPHAND will offset losses from the drop in CHAROEN POKPHAND's long position.| CITY OFFICE vs. MINCO SILVER | CITY OFFICE vs. CSSC Offshore Marine | CITY OFFICE vs. Eurasia Mining Plc | CITY OFFICE vs. Zijin Mining Group |
| CHAROEN POKPHAND vs. Liberty Broadband | CHAROEN POKPHAND vs. Transport International Holdings | CHAROEN POKPHAND vs. Broadridge Financial Solutions | CHAROEN POKPHAND vs. Sixt Leasing SE |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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