Correlation Between Carindale Property and Centuria Industrial
Can any of the company-specific risk be diversified away by investing in both Carindale Property and Centuria Industrial 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 Carindale Property and Centuria Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carindale Property Trust and Centuria Industrial Reit, you can compare the effects of market volatilities on Carindale Property and Centuria Industrial 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 Carindale Property with a short position of Centuria Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carindale Property and Centuria Industrial.
Diversification Opportunities for Carindale Property and Centuria Industrial
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carindale and Centuria is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Carindale Property Trust and Centuria Industrial Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centuria Industrial Reit and Carindale Property 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 Carindale Property Trust are associated (or correlated) with Centuria Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centuria Industrial Reit has no effect on the direction of Carindale Property i.e., Carindale Property and Centuria Industrial go up and down completely randomly.
Pair Corralation between Carindale Property and Centuria Industrial
Assuming the 90 days trading horizon Carindale Property Trust is expected to generate 1.92 times more return on investment than Centuria Industrial. However, Carindale Property is 1.92 times more volatile than Centuria Industrial Reit. It trades about 0.01 of its potential returns per unit of risk. Centuria Industrial Reit is currently generating about -0.31 per unit of risk. If you would invest 470.00 in Carindale Property Trust on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Carindale Property Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carindale Property Trust vs. Centuria Industrial Reit
Performance |
| Timeline |
| Carindale Property Trust |
| Centuria Industrial Reit |
Carindale Property and Centuria Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carindale Property and Centuria Industrial
The main advantage of trading using opposite Carindale Property and Centuria Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carindale Property position performs unexpectedly, Centuria Industrial 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 Industrial will offset losses from the drop in Centuria Industrial's long position.| Carindale Property vs. Bio Gene Technology | Carindale Property vs. EMvision Medical Devices | Carindale Property vs. MetalsGrove Mining | Carindale Property vs. Legacy Iron Ore |
| Centuria Industrial vs. Auctus Alternative Investments | Centuria Industrial vs. Carawine Resources Limited | Centuria Industrial vs. Mirrabooka Investments | Centuria Industrial vs. Embark Education Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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