Correlation Between Curbline Properties and New Concept
Can any of the company-specific risk be diversified away by investing in both Curbline Properties and New Concept 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 Curbline Properties and New Concept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curbline Properties Corp and New Concept Energy, you can compare the effects of market volatilities on Curbline Properties and New Concept 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 Curbline Properties with a short position of New Concept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curbline Properties and New Concept.
Diversification Opportunities for Curbline Properties and New Concept
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Curbline and New is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Curbline Properties Corp and New Concept Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Concept Energy and Curbline Properties 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 Curbline Properties Corp are associated (or correlated) with New Concept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Concept Energy has no effect on the direction of Curbline Properties i.e., Curbline Properties and New Concept go up and down completely randomly.
Pair Corralation between Curbline Properties and New Concept
Given the investment horizon of 90 days Curbline Properties is expected to generate 13.01 times less return on investment than New Concept. But when comparing it to its historical volatility, Curbline Properties Corp is 1.17 times less risky than New Concept. It trades about 0.01 of its potential returns per unit of risk. New Concept Energy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 115.00 in New Concept Energy on October 15, 2024 and sell it today you would earn a total of 4.00 from holding New Concept Energy or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curbline Properties Corp vs. New Concept Energy
Performance |
| Timeline |
| Curbline Properties Corp |
| New Concept Energy |
Curbline Properties and New Concept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curbline Properties and New Concept
The main advantage of trading using opposite Curbline Properties and New Concept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curbline Properties position performs unexpectedly, New Concept 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 New Concept will offset losses from the drop in New Concept's long position.| Curbline Properties vs. Cadence Design Systems | Curbline Properties vs. Air Products and | Curbline Properties vs. Sealed Air | Curbline Properties vs. NetSol Technologies |
| New Concept vs. Marcus Millichap | New Concept vs. J W Mays | New Concept vs. Frp Holdings Ord | New Concept vs. Maui Land Pineapple |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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