Correlation Between Centuria Industrial and De Grey
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and De Grey 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 De Grey 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 De Grey Mining, you can compare the effects of market volatilities on Centuria Industrial and De Grey 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 De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and De Grey.
Diversification Opportunities for Centuria Industrial and De Grey
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centuria and DEG is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey 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 De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and De Grey go up and down completely randomly.
Pair Corralation between Centuria Industrial and De Grey
Assuming the 90 days trading horizon Centuria Industrial is expected to generate 8.55 times less return on investment than De Grey. But when comparing it to its historical volatility, Centuria Industrial Reit is 1.1 times less risky than De Grey. It trades about 0.05 of its potential returns per unit of risk. De Grey Mining is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 180.00 in De Grey Mining on October 23, 2024 and sell it today you would earn a total of 20.00 from holding De Grey Mining or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Centuria Industrial Reit vs. De Grey Mining
Performance |
| Timeline |
| Centuria Industrial Reit |
| De Grey Mining |
Centuria Industrial and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and De Grey
The main advantage of trading using opposite Centuria Industrial and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey'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 |
| De Grey vs. Sequoia Financial Group | De Grey vs. Flagship Investments | De Grey vs. Navigator Global Investments | De Grey vs. Finexia Financial Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |