Correlation Between AEON MALL and Citycon Oyj
Can any of the company-specific risk be diversified away by investing in both AEON MALL and Citycon Oyj 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 AEON MALL and Citycon Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON MALL LTD and Citycon Oyj, you can compare the effects of market volatilities on AEON MALL and Citycon Oyj 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 AEON MALL with a short position of Citycon Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON MALL and Citycon Oyj.
Diversification Opportunities for AEON MALL and Citycon Oyj
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AEON and Citycon is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AEON MALL LTD and Citycon Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citycon Oyj and AEON MALL 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 AEON MALL LTD are associated (or correlated) with Citycon Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citycon Oyj has no effect on the direction of AEON MALL i.e., AEON MALL and Citycon Oyj go up and down completely randomly.
Pair Corralation between AEON MALL and Citycon Oyj
Assuming the 90 days horizon AEON MALL LTD is expected to generate 0.49 times more return on investment than Citycon Oyj. However, AEON MALL LTD is 2.05 times less risky than Citycon Oyj. It trades about 0.15 of its potential returns per unit of risk. Citycon Oyj is currently generating about -0.07 per unit of risk. If you would invest 1,200 in AEON MALL LTD on September 1, 2024 and sell it today you would earn a total of 40.00 from holding AEON MALL LTD or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
AEON MALL LTD vs. Citycon Oyj
Performance |
| Timeline |
| AEON MALL LTD |
| Citycon Oyj |
AEON MALL and Citycon Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON MALL and Citycon Oyj
The main advantage of trading using opposite AEON MALL and Citycon Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON MALL position performs unexpectedly, Citycon Oyj 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 Citycon Oyj will offset losses from the drop in Citycon Oyj's long position.| AEON MALL vs. OPEN HOUSE GROUP | AEON MALL vs. Superior Plus Corp | AEON MALL vs. NMI Holdings | AEON MALL vs. Origin Agritech |
| Citycon Oyj vs. OPEN HOUSE GROUP | Citycon Oyj vs. Superior Plus Corp | Citycon Oyj vs. NMI Holdings | Citycon Oyj vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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