Correlation Between Cousins Properties and Corporate Office
Can any of the company-specific risk be diversified away by investing in both Cousins Properties and Corporate 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 Properties and Corporate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cousins Properties Incorporated and Corporate Office Properties, you can compare the effects of market volatilities on Cousins Properties and Corporate 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 Properties with a short position of Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cousins Properties and Corporate Office.
Diversification Opportunities for Cousins Properties and Corporate Office
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cousins and Corporate is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cousins Properties Incorporate and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro and Cousins 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 Cousins Properties Incorporated are associated (or correlated) with Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of Cousins Properties i.e., Cousins Properties and Corporate Office go up and down completely randomly.
Pair Corralation between Cousins Properties and Corporate Office
If you would invest 3,125 in Cousins Properties Incorporated on August 24, 2024 and sell it today you would earn a total of 27.00 from holding Cousins Properties Incorporated or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cousins Properties Incorporate vs. Corporate Office Properties
Performance |
| Timeline |
| Cousins Properties |
| Corporate Office Pro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cousins Properties and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cousins Properties and Corporate Office
The main advantage of trading using opposite Cousins Properties and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cousins Properties position performs unexpectedly, Corporate 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 Corporate Office will offset losses from the drop in Corporate Office's long position.| Cousins Properties vs. Highwoods Properties | Cousins Properties vs. Douglas Emmett | Cousins Properties vs. Equity Commonwealth | Cousins Properties vs. Kilroy Realty Corp |
| Corporate Office vs. Highwoods Properties | Corporate Office vs. Piedmont Office Realty | Corporate Office vs. Douglas Emmett | Corporate Office vs. Kilroy Realty Corp |
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.
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