Correlation Between CDN IMPERIAL and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL 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 CDN IMPERIAL and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and CENTURIA OFFICE.
Diversification Opportunities for CDN IMPERIAL and CENTURIA OFFICE
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDN and CENTURIA is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK 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 CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and CENTURIA OFFICE
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.68 times more return on investment than CENTURIA OFFICE. However, CDN IMPERIAL BANK is 1.47 times less risky than CENTURIA OFFICE. It trades about 0.16 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.01 per unit of risk. If you would invest 4,270 in CDN IMPERIAL BANK on October 12, 2024 and sell it today you would earn a total of 1,853 from holding CDN IMPERIAL BANK or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| CENTURIA OFFICE REIT |
CDN IMPERIAL and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and CENTURIA OFFICE
The main advantage of trading using opposite CDN IMPERIAL and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. CITIC Telecom International | CDN IMPERIAL vs. Canon Marketing Japan | CDN IMPERIAL vs. FAST RETAIL ADR | CDN IMPERIAL vs. Tencent Music Entertainment |
| CENTURIA OFFICE vs. Computershare Limited | CENTURIA OFFICE vs. CAIRN HOMES EO | CENTURIA OFFICE vs. Addus HomeCare | CENTURIA OFFICE vs. Ribbon Communications |
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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