Correlation Between Centuria Industrial and Black Rock
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and Black Rock 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 Black Rock 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 Black Rock Mining, you can compare the effects of market volatilities on Centuria Industrial and Black Rock 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 Black Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Black Rock.
Diversification Opportunities for Centuria Industrial and Black Rock
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centuria and Black is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and Black Rock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Rock Mining 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 Black Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Rock Mining has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and Black Rock go up and down completely randomly.
Pair Corralation between Centuria Industrial and Black Rock
Assuming the 90 days trading horizon Centuria Industrial Reit is expected to generate 0.26 times more return on investment than Black Rock. However, Centuria Industrial Reit is 3.83 times less risky than Black Rock. It trades about -0.28 of its potential returns per unit of risk. Black Rock Mining is currently generating about -0.16 per unit of risk. If you would invest 309.00 in Centuria Industrial Reit on August 29, 2024 and sell it today you would lose (11.00) from holding Centuria Industrial Reit or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centuria Industrial Reit vs. Black Rock Mining
Performance |
| Timeline |
| Centuria Industrial Reit |
| Black Rock Mining |
Centuria Industrial and Black Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and Black Rock
The main advantage of trading using opposite Centuria Industrial and Black Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, Black Rock 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 Black Rock will offset losses from the drop in Black Rock's long position.| Centuria Industrial vs. Scentre Group | Centuria Industrial vs. Vicinity Centres Re | Centuria Industrial vs. Charter Hall Retail | Centuria Industrial vs. Cromwell Property Group |
| Black Rock vs. Northern Star Resources | Black Rock vs. Evolution Mining | Black Rock vs. Bluescope Steel | Black Rock vs. Sandfire Resources NL |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |