Correlation Between CITY OFFICE and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) 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 CEOTRONICS, you can compare the effects of market volatilities on CITY OFFICE and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and CEOTRONICS (CEKSG).
Diversification Opportunities for CITY OFFICE and CEOTRONICS (CEKSG)
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CITY and CEOTRONICS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between CITY OFFICE and CEOTRONICS (CEKSG)
Assuming the 90 days horizon CITY OFFICE REIT is expected to generate 1.26 times more return on investment than CEOTRONICS (CEKSG). However, CITY OFFICE is 1.26 times more volatile than CEOTRONICS. It trades about 0.09 of its potential returns per unit of risk. CEOTRONICS is currently generating about 0.01 per unit of risk. If you would invest 408.00 in CITY OFFICE REIT on September 1, 2024 and sell it today you would earn a total of 152.00 from holding CITY OFFICE REIT or generate 37.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. CEOTRONICS
Performance |
| Timeline |
| CITY OFFICE REIT |
| CEOTRONICS (CEKSG) |
CITY OFFICE and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and CEOTRONICS (CEKSG)
The main advantage of trading using opposite CITY OFFICE and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| CITY OFFICE vs. QINGCI GAMES INC | CITY OFFICE vs. ANGLER GAMING PLC | CITY OFFICE vs. GAMESTOP | CITY OFFICE vs. Games Workshop Group |
| CEOTRONICS (CEKSG) vs. SIVERS SEMICONDUCTORS AB | CEOTRONICS (CEKSG) vs. Darden Restaurants | CEOTRONICS (CEKSG) vs. Reliance Steel Aluminum | CEOTRONICS (CEKSG) vs. Q2M Managementberatung AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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