Correlation Between Datang International and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Datang International 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 Datang International and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datang International Power and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Datang International 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 Datang International with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang International and CENTURIA OFFICE.
Diversification Opportunities for Datang International and CENTURIA OFFICE
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Datang and CENTURIA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Datang International Power 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 Datang International 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 Datang International Power 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 Datang International i.e., Datang International and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Datang International and CENTURIA OFFICE
Assuming the 90 days horizon Datang International Power is expected to under-perform the CENTURIA OFFICE. In addition to that, Datang International is 2.3 times more volatile than CENTURIA OFFICE REIT. It trades about -0.08 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 August 31, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang International Power vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| Datang International |
| CENTURIA OFFICE REIT |
Datang International and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang International and CENTURIA OFFICE
The main advantage of trading using opposite Datang International and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang International 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.| Datang International vs. CENTRICA ADR NEW | Datang International vs. TransAlta | Datang International vs. Superior Plus Corp | Datang International vs. NMI Holdings |
| CENTURIA OFFICE vs. MHP Hotel AG | CENTURIA OFFICE vs. Playa Hotels Resorts | CENTURIA OFFICE vs. InterContinental Hotels Group | CENTURIA OFFICE vs. Meli Hotels International |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |