Correlation Between Centuria Industrial and Bellevue Gold
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and Bellevue Gold 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 Bellevue Gold 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 Bellevue Gold, you can compare the effects of market volatilities on Centuria Industrial and Bellevue Gold 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 Bellevue Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Bellevue Gold.
Diversification Opportunities for Centuria Industrial and Bellevue Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Centuria and Bellevue is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and Bellevue Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Gold 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 Bellevue Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Gold has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and Bellevue Gold go up and down completely randomly.
Pair Corralation between Centuria Industrial and Bellevue Gold
Assuming the 90 days trading horizon Centuria Industrial Reit is expected to generate 0.28 times more return on investment than Bellevue Gold. However, Centuria Industrial Reit is 3.55 times less risky than Bellevue Gold. It trades about -0.03 of its potential returns per unit of risk. Bellevue Gold is currently generating about -0.01 per unit of risk. If you would invest 312.00 in Centuria Industrial Reit on September 14, 2024 and sell it today you would lose (25.00) from holding Centuria Industrial Reit or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centuria Industrial Reit vs. Bellevue Gold
Performance |
| Timeline |
| Centuria Industrial Reit |
| Bellevue Gold |
Centuria Industrial and Bellevue Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and Bellevue Gold
The main advantage of trading using opposite Centuria Industrial and Bellevue Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, Bellevue Gold 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 Bellevue Gold will offset losses from the drop in Bellevue Gold's long position.| Centuria Industrial vs. Aussie Broadband | Centuria Industrial vs. Aurelia Metals | Centuria Industrial vs. Air New Zealand | Centuria Industrial vs. Gold Road Resources |
| Bellevue Gold vs. Hotel Property Investments | Bellevue Gold vs. Hawsons Iron | Bellevue Gold vs. Red Hill Iron | Bellevue Gold vs. Bluescope Steel |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |