Correlation Between CITY OFFICE and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on CITY OFFICE and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and OFFICE DEPOT.
Diversification Opportunities for CITY OFFICE and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITY and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between CITY OFFICE and OFFICE DEPOT
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. OFFICE DEPOT
Performance |
| Timeline |
| CITY OFFICE REIT |
| OFFICE DEPOT |
CITY OFFICE and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and OFFICE DEPOT
The main advantage of trading using opposite CITY OFFICE and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT'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 |
| OFFICE DEPOT vs. National Retail Properties | OFFICE DEPOT vs. Goosehead Insurance | OFFICE DEPOT vs. The Trade Desk | OFFICE DEPOT vs. AUTO TRADER ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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