Correlation Between KOOL2PLAY and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY and CITY 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 KOOL2PLAY and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and CITY OFFICE REIT, you can compare the effects of market volatilities on KOOL2PLAY and CITY 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 KOOL2PLAY with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and CITY OFFICE.
Diversification Opportunities for KOOL2PLAY and CITY OFFICE
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KOOL2PLAY and CITY is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT and KOOL2PLAY 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 KOOL2PLAY SA ZY are associated (or correlated) with CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of KOOL2PLAY i.e., KOOL2PLAY and CITY OFFICE go up and down completely randomly.
Pair Corralation between KOOL2PLAY and CITY OFFICE
Assuming the 90 days horizon KOOL2PLAY is expected to generate 1.2 times less return on investment than CITY OFFICE. In addition to that, KOOL2PLAY is 1.69 times more volatile than CITY OFFICE REIT. It trades about 0.12 of its total potential returns per unit of risk. CITY OFFICE REIT is currently generating about 0.24 per unit of volatility. If you would invest 442.00 in CITY OFFICE REIT on September 2, 2024 and sell it today you would earn a total of 83.00 from holding CITY OFFICE REIT or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. CITY OFFICE REIT
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| CITY OFFICE REIT |
KOOL2PLAY and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and CITY OFFICE
The main advantage of trading using opposite KOOL2PLAY and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY position performs unexpectedly, CITY 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| KOOL2PLAY vs. Nintendo Co | KOOL2PLAY vs. Sea Limited | KOOL2PLAY vs. Superior Plus Corp | KOOL2PLAY vs. NMI Holdings |
| CITY OFFICE vs. GRUPO CARSO A1 | CITY OFFICE vs. PLAYTECH | CITY OFFICE vs. PLAY2CHILL SA ZY | CITY OFFICE vs. Grupo Carso SAB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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