Correlation Between SOEDER SPORTFISKE and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE 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 SOEDER SPORTFISKE and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOEDER SPORTFISKE AB and CITY OFFICE REIT, you can compare the effects of market volatilities on SOEDER SPORTFISKE 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 SOEDER SPORTFISKE with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and CITY OFFICE.
Diversification Opportunities for SOEDER SPORTFISKE and CITY OFFICE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOEDER and CITY is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB 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 SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB 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 SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and CITY OFFICE go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and CITY OFFICE
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 1.2 times more return on investment than CITY OFFICE. However, SOEDER SPORTFISKE is 1.2 times more volatile than CITY OFFICE REIT. It trades about 0.19 of its potential returns per unit of risk. CITY OFFICE REIT is currently generating about -0.05 per unit of risk. If you would invest 217.00 in SOEDER SPORTFISKE AB on November 5, 2024 and sell it today you would earn a total of 31.00 from holding SOEDER SPORTFISKE AB or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. CITY OFFICE REIT
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| CITY OFFICE REIT |
SOEDER SPORTFISKE and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and CITY OFFICE
The main advantage of trading using opposite SOEDER SPORTFISKE and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE 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.| SOEDER SPORTFISKE vs. SERI INDUSTRIAL EO | SOEDER SPORTFISKE vs. MCEWEN MINING INC | SOEDER SPORTFISKE vs. ARDAGH METAL PACDL 0001 | SOEDER SPORTFISKE vs. East Africa Metals |
| CITY OFFICE vs. The Boston Beer | CITY OFFICE vs. Spirent Communications plc | CITY OFFICE vs. Chunghwa Telecom Co | CITY OFFICE vs. United Breweries Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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