Correlation Between COUSINS PTIES and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both COUSINS PTIES and CITY OFFICE 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 COUSINS PTIES and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COUSINS PTIES INC and CITY OFFICE REIT, you can compare the effects of market volatilities on COUSINS PTIES and CITY OFFICE 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 COUSINS PTIES with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COUSINS PTIES and CITY OFFICE.
Diversification Opportunities for COUSINS PTIES and CITY OFFICE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COUSINS and CITY is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding COUSINS PTIES INC and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT and COUSINS PTIES 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 COUSINS PTIES INC are associated (or correlated) with CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of COUSINS PTIES i.e., COUSINS PTIES and CITY OFFICE go up and down completely randomly.
Pair Corralation between COUSINS PTIES and CITY OFFICE
Assuming the 90 days trading horizon COUSINS PTIES INC is expected to generate 0.61 times more return on investment than CITY OFFICE. However, COUSINS PTIES INC is 1.65 times less risky than CITY OFFICE. It trades about 0.03 of its potential returns per unit of risk. CITY OFFICE REIT is currently generating about -0.05 per unit of risk. If you would invest 2,900 in COUSINS PTIES INC on November 6, 2024 and sell it today you would earn a total of 20.00 from holding COUSINS PTIES INC or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
COUSINS PTIES INC vs. CITY OFFICE REIT
Performance |
| Timeline |
| COUSINS PTIES INC |
| CITY OFFICE REIT |
COUSINS PTIES and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COUSINS PTIES and CITY OFFICE
The main advantage of trading using opposite COUSINS PTIES and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COUSINS PTIES position performs unexpectedly, CITY OFFICE 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| COUSINS PTIES vs. Meta Financial Group | COUSINS PTIES vs. Webster Financial | COUSINS PTIES vs. ON SEMICONDUCTOR | COUSINS PTIES vs. NXP Semiconductors NV |
| CITY OFFICE vs. Siamgas And Petrochemicals | CITY OFFICE vs. AIR PRODCHEMICALS | CITY OFFICE vs. Summit Hotel Properties | CITY OFFICE vs. X FAB Silicon Foundries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |