Correlation Between CITY OFFICE and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and SOCKET MOBILE 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 SOCKET MOBILE 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 SOCKET MOBILE NEW, you can compare the effects of market volatilities on CITY OFFICE and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and SOCKET MOBILE.
Diversification Opportunities for CITY OFFICE and SOCKET MOBILE
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITY and SOCKET is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between CITY OFFICE and SOCKET MOBILE
Assuming the 90 days horizon CITY OFFICE REIT is expected to under-perform the SOCKET MOBILE. But the stock apears to be less risky and, when comparing its historical volatility, CITY OFFICE REIT is 1.73 times less risky than SOCKET MOBILE. The stock trades about -0.19 of its potential returns per unit of risk. The SOCKET MOBILE NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 137.00 in SOCKET MOBILE NEW on October 17, 2024 and sell it today you would earn a total of 8.00 from holding SOCKET MOBILE NEW or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| CITY OFFICE REIT |
| SOCKET MOBILE NEW |
CITY OFFICE and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and SOCKET MOBILE
The main advantage of trading using opposite CITY OFFICE and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| CITY OFFICE vs. PNC Financial Services | CITY OFFICE vs. American Eagle Outfitters | CITY OFFICE vs. BOS BETTER ONLINE | CITY OFFICE vs. Urban Outfitters |
| SOCKET MOBILE vs. Addus HomeCare | SOCKET MOBILE vs. CITY OFFICE REIT | SOCKET MOBILE vs. OFFICE DEPOT | SOCKET MOBILE vs. INTER CARS SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |