Correlation Between Centuria Industrial and Calix
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and Calix 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 Calix 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 Calix, you can compare the effects of market volatilities on Centuria Industrial and Calix 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 Calix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Calix.
Diversification Opportunities for Centuria Industrial and Calix
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centuria and Calix is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and Calix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix 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 Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and Calix go up and down completely randomly.
Pair Corralation between Centuria Industrial and Calix
Assuming the 90 days trading horizon Centuria Industrial Reit is expected to generate 0.16 times more return on investment than Calix. However, Centuria Industrial Reit is 6.17 times less risky than Calix. It trades about -0.28 of its potential returns per unit of risk. Calix is currently generating about -0.09 per unit of risk. If you would invest 300.00 in Centuria Industrial Reit on September 14, 2024 and sell it today you would lose (13.00) from holding Centuria Industrial Reit or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centuria Industrial Reit vs. Calix
Performance |
| Timeline |
| Centuria Industrial Reit |
| Calix |
Centuria Industrial and Calix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and Calix
The main advantage of trading using opposite Centuria Industrial and Calix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, Calix 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 Calix will offset losses from the drop in Calix'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 |
| Calix vs. Centuria Industrial Reit | Calix vs. Australian United Investment | Calix vs. Retail Food Group | Calix vs. Flagship Investments |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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