Correlation Between NORDIC HALIBUT and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT 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 NORDIC HALIBUT and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and CITY OFFICE REIT, you can compare the effects of market volatilities on NORDIC HALIBUT 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 NORDIC HALIBUT with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and CITY OFFICE.
Diversification Opportunities for NORDIC HALIBUT and CITY OFFICE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NORDIC and CITY is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS 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 NORDIC HALIBUT 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 NORDIC HALIBUT AS 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 NORDIC HALIBUT i.e., NORDIC HALIBUT and CITY OFFICE go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and CITY OFFICE
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the CITY OFFICE. But the stock apears to be less risky and, when comparing its historical volatility, NORDIC HALIBUT AS is 1.04 times less risky than CITY OFFICE. The stock trades about -0.25 of its potential returns per unit of risk. The CITY OFFICE REIT is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 470.00 in CITY OFFICE REIT on September 12, 2024 and sell it today you would earn a total of 70.00 from holding CITY OFFICE REIT or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. CITY OFFICE REIT
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| CITY OFFICE REIT |
NORDIC HALIBUT and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and CITY OFFICE
The main advantage of trading using opposite NORDIC HALIBUT and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT 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.| NORDIC HALIBUT vs. BJs Wholesale Club | NORDIC HALIBUT vs. Ross Stores | NORDIC HALIBUT vs. PICKN PAY STORES | NORDIC HALIBUT vs. Solstad Offshore ASA |
| CITY OFFICE vs. Office Properties Income | CITY OFFICE vs. CREMECOMTRSBI DL 001 | CITY OFFICE vs. Superior Plus Corp | CITY OFFICE vs. SIVERS SEMICONDUCTORS AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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