Correlation Between GuocoLand and Citycon Oyj
Can any of the company-specific risk be diversified away by investing in both GuocoLand and Citycon Oyj 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 GuocoLand and Citycon Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GuocoLand Limited and Citycon Oyj, you can compare the effects of market volatilities on GuocoLand and Citycon Oyj 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 GuocoLand with a short position of Citycon Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuocoLand and Citycon Oyj.
Diversification Opportunities for GuocoLand and Citycon Oyj
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GuocoLand and Citycon is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding GuocoLand Limited and Citycon Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citycon Oyj and GuocoLand 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 GuocoLand Limited are associated (or correlated) with Citycon Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citycon Oyj has no effect on the direction of GuocoLand i.e., GuocoLand and Citycon Oyj go up and down completely randomly.
Pair Corralation between GuocoLand and Citycon Oyj
Assuming the 90 days trading horizon GuocoLand Limited is expected to generate 0.54 times more return on investment than Citycon Oyj. However, GuocoLand Limited is 1.86 times less risky than Citycon Oyj. It trades about 0.13 of its potential returns per unit of risk. Citycon Oyj is currently generating about -0.07 per unit of risk. If you would invest 103.00 in GuocoLand Limited on September 1, 2024 and sell it today you would earn a total of 3.00 from holding GuocoLand Limited or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuocoLand Limited vs. Citycon Oyj
Performance |
| Timeline |
| GuocoLand Limited |
| Citycon Oyj |
GuocoLand and Citycon Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuocoLand and Citycon Oyj
The main advantage of trading using opposite GuocoLand and Citycon Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuocoLand position performs unexpectedly, Citycon Oyj 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 Citycon Oyj will offset losses from the drop in Citycon Oyj's long position.| GuocoLand vs. ARROW ELECTRONICS | GuocoLand vs. Nucletron Electronic Aktiengesellschaft | GuocoLand vs. Computer And Technologies | GuocoLand vs. Meiko Electronics Co |
| Citycon Oyj vs. OPEN HOUSE GROUP | Citycon Oyj vs. Superior Plus Corp | Citycon Oyj vs. NMI Holdings | Citycon Oyj vs. Origin Agritech |
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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |