Correlation Between CITY OFFICE and AENA SME
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and AENA SME 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 AENA SME 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 AENA SME UNSPADR110, you can compare the effects of market volatilities on CITY OFFICE and AENA SME 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 AENA SME. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and AENA SME.
Diversification Opportunities for CITY OFFICE and AENA SME
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITY and AENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and AENA SME UNSPADR110 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AENA SME UNSPADR110 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 AENA SME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AENA SME UNSPADR110 has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and AENA SME go up and down completely randomly.
Pair Corralation between CITY OFFICE and AENA SME
Assuming the 90 days horizon CITY OFFICE REIT is expected to generate 2.46 times more return on investment than AENA SME. However, CITY OFFICE is 2.46 times more volatile than AENA SME UNSPADR110. It trades about 0.24 of its potential returns per unit of risk. AENA SME UNSPADR110 is currently generating about 0.06 per unit of risk. If you would invest 442.00 in CITY OFFICE REIT on September 2, 2024 and sell it today you would earn a total of 83.00 from holding CITY OFFICE REIT or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. AENA SME UNSPADR110
Performance |
| Timeline |
| CITY OFFICE REIT |
| AENA SME UNSPADR110 |
CITY OFFICE and AENA SME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and AENA SME
The main advantage of trading using opposite CITY OFFICE and AENA SME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, AENA SME 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 AENA SME will offset losses from the drop in AENA SME's long position.| CITY OFFICE vs. GRUPO CARSO A1 | CITY OFFICE vs. PLAYTECH | CITY OFFICE vs. PLAY2CHILL SA ZY | CITY OFFICE vs. Grupo Carso SAB |
| AENA SME vs. OFFICE DEPOT | AENA SME vs. MAVEN WIRELESS SWEDEN | AENA SME vs. CITY OFFICE REIT | AENA SME vs. GREENX METALS LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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