Correlation Between CITY OFFICE and Lion One
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on CITY OFFICE and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and Lion One.
Diversification Opportunities for CITY OFFICE and Lion One
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CITY and Lion is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and Lion One go up and down completely randomly.
Pair Corralation between CITY OFFICE and Lion One
Assuming the 90 days horizon CITY OFFICE REIT is expected to generate 0.73 times more return on investment than Lion One. However, CITY OFFICE REIT is 1.38 times less risky than Lion One. It trades about 0.03 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.02 per unit of risk. If you would invest 443.00 in CITY OFFICE REIT on August 31, 2024 and sell it today you would earn a total of 117.00 from holding CITY OFFICE REIT or generate 26.41% 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. Lion One Metals
Performance |
| Timeline |
| CITY OFFICE REIT |
| Lion One Metals |
CITY OFFICE and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and Lion One
The main advantage of trading using opposite CITY OFFICE and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| CITY OFFICE vs. Columbia Sportswear | CITY OFFICE vs. INTERSHOP Communications Aktiengesellschaft | CITY OFFICE vs. Charter Communications | CITY OFFICE vs. KOOL2PLAY SA ZY |
| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |