Correlation Between City Office and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both City Office and Cresud SACIF 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 City Office and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Office and Cresud SACIF y, you can compare the effects of market volatilities on City Office and Cresud SACIF 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 City Office with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Office and Cresud SACIF.
Diversification Opportunities for City Office and Cresud SACIF
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and Cresud is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding City Office and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and City Office 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 City Office are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of City Office i.e., City Office and Cresud SACIF go up and down completely randomly.
Pair Corralation between City Office and Cresud SACIF
Considering the 90-day investment horizon City Office is expected to generate 0.76 times more return on investment than Cresud SACIF. However, City Office is 1.31 times less risky than Cresud SACIF. It trades about -0.1 of its potential returns per unit of risk. Cresud SACIF y is currently generating about -0.38 per unit of risk. If you would invest 522.00 in City Office on November 27, 2024 and sell it today you would lose (22.50) from holding City Office or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Office vs. Cresud SACIF y
Performance |
| Timeline |
| City Office |
| Cresud SACIF y |
City Office and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Office and Cresud SACIF
The main advantage of trading using opposite City Office and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Office position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| City Office vs. Hudson Pacific Properties | City Office vs. Piedmont Office Realty | City Office vs. Office Properties Income | City Office vs. Kilroy Realty Corp |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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