Correlation Between Citizens and SmartCentres Real

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citizens and SmartCentres Real 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 Citizens and SmartCentres Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and SmartCentres Real Estate, you can compare the effects of market volatilities on Citizens and SmartCentres Real 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 Citizens with a short position of SmartCentres Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and SmartCentres Real.

Diversification Opportunities for Citizens and SmartCentres Real

CitizensSmartCentresDiversified AwayCitizensSmartCentresDiversified Away100%
0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Citizens and SmartCentres is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and SmartCentres Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartCentres Real Estate and Citizens 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 Citizens are associated (or correlated) with SmartCentres Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartCentres Real Estate has no effect on the direction of Citizens i.e., Citizens and SmartCentres Real go up and down completely randomly.

Pair Corralation between Citizens and SmartCentres Real

Considering the 90-day investment horizon Citizens is expected to generate 3.65 times more return on investment than SmartCentres Real. However, Citizens is 3.65 times more volatile than SmartCentres Real Estate. It trades about 0.06 of its potential returns per unit of risk. SmartCentres Real Estate is currently generating about 0.02 per unit of risk. If you would invest  234.00  in Citizens on December 4, 2024 and sell it today you would earn a total of  232.00  from holding Citizens or generate 99.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Citizens  vs.  SmartCentres Real Estate

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-50510
JavaScript chart by amCharts 3.21.15CIA SRU-UN
       Timeline  
Citizens 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Citizens are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Citizens sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar44.555.5
SmartCentres Real Estate 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SmartCentres Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SmartCentres Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar23.52424.52525.526

Citizens and SmartCentres Real Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.5-8.61-5.73-2.840.02.815.728.6211.5314.44 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15CIA SRU-UN
       Returns  

Pair Trading with Citizens and SmartCentres Real

The main advantage of trading using opposite Citizens and SmartCentres Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, SmartCentres Real 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 SmartCentres Real will offset losses from the drop in SmartCentres Real's long position.
The idea behind Citizens and SmartCentres Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios