Correlation Between FUTURE GAMING and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and CENTURIA OFFICE 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 FUTURE GAMING and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUTURE GAMING GRP and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on FUTURE GAMING and CENTURIA OFFICE 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 FUTURE GAMING with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and CENTURIA OFFICE.
Diversification Opportunities for FUTURE GAMING and CENTURIA OFFICE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FUTURE and CENTURIA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and FUTURE GAMING 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 FUTURE GAMING GRP are associated (or correlated) with CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between FUTURE GAMING and CENTURIA OFFICE
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to under-perform the CENTURIA OFFICE. In addition to that, FUTURE GAMING is 3.56 times more volatile than CENTURIA OFFICE REIT. It trades about -0.1 of its total potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.16 per unit of volatility. If you would invest 70.00 in CENTURIA OFFICE REIT on September 1, 2024 and sell it today you would earn a total of 3.00 from holding CENTURIA OFFICE REIT or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| FUTURE GAMING GRP |
| CENTURIA OFFICE REIT |
FUTURE GAMING and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and CENTURIA OFFICE
The main advantage of trading using opposite FUTURE GAMING and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| FUTURE GAMING vs. Churchill Downs Incorporated | FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp |
| CENTURIA OFFICE vs. Rayonier Advanced Materials | CENTURIA OFFICE vs. EMBARK EDUCATION LTD | CENTURIA OFFICE vs. Mitsubishi Materials | CENTURIA OFFICE vs. TAL Education Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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