Correlation Between Centuria Industrial and Aspen Group
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and Aspen Group 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 Centuria Industrial and Aspen Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centuria Industrial Reit and Aspen Group Unit, you can compare the effects of market volatilities on Centuria Industrial and Aspen Group 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 Centuria Industrial with a short position of Aspen Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Aspen Group.
Diversification Opportunities for Centuria Industrial and Aspen Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centuria and Aspen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and Aspen Group Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Group Unit and Centuria Industrial 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 Centuria Industrial Reit are associated (or correlated) with Aspen Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Group Unit has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and Aspen Group go up and down completely randomly.
Pair Corralation between Centuria Industrial and Aspen Group
Assuming the 90 days trading horizon Centuria Industrial Reit is expected to under-perform the Aspen Group. But the stock apears to be less risky and, when comparing its historical volatility, Centuria Industrial Reit is 1.84 times less risky than Aspen Group. The stock trades about 0.0 of its potential returns per unit of risk. The Aspen Group Unit is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Aspen Group Unit on September 12, 2024 and sell it today you would earn a total of 77.00 from holding Aspen Group Unit or generate 46.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centuria Industrial Reit vs. Aspen Group Unit
Performance |
| Timeline |
| Centuria Industrial Reit |
| Aspen Group Unit |
Centuria Industrial and Aspen Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and Aspen Group
The main advantage of trading using opposite Centuria Industrial and Aspen Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, Aspen Group 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 Aspen Group will offset losses from the drop in Aspen Group's long position.| Centuria Industrial vs. Red Hill Iron | Centuria Industrial vs. Iron Road | Centuria Industrial vs. Flagship Investments | Centuria Industrial vs. BKI Investment |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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