Correlation Between CITY OFFICE and AJ LUCAS
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and AJ LUCAS 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 AJ LUCAS 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 AJ LUCAS GROUP, you can compare the effects of market volatilities on CITY OFFICE and AJ LUCAS 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 AJ LUCAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and AJ LUCAS.
Diversification Opportunities for CITY OFFICE and AJ LUCAS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITY and FW9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and AJ LUCAS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ LUCAS GROUP 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 AJ LUCAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ LUCAS GROUP has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and AJ LUCAS go up and down completely randomly.
Pair Corralation between CITY OFFICE and AJ LUCAS
If you would invest (100.00) in AJ LUCAS GROUP on October 25, 2024 and sell it today you would earn a total of 100.00 from holding AJ LUCAS GROUP 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. AJ LUCAS GROUP
Performance |
| Timeline |
| CITY OFFICE REIT |
| AJ LUCAS GROUP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
CITY OFFICE and AJ LUCAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and AJ LUCAS
The main advantage of trading using opposite CITY OFFICE and AJ LUCAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, AJ LUCAS 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 AJ LUCAS will offset losses from the drop in AJ LUCAS's long position.| CITY OFFICE vs. Semiconductor Manufacturing International | CITY OFFICE vs. MagnaChip Semiconductor Corp | CITY OFFICE vs. APPLIED MATERIALS | CITY OFFICE vs. BE Semiconductor Industries |
| AJ LUCAS vs. High Liner Foods | AJ LUCAS vs. AIR PRODCHEMICALS | AJ LUCAS vs. Molson Coors Beverage | AJ LUCAS vs. Citic Telecom International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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