Correlation Between FUYO GENERAL and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and CENTURIA 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 FUYO GENERAL and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on FUYO GENERAL and CENTURIA 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 FUYO GENERAL with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and CENTURIA OFFICE.
Diversification Opportunities for FUYO GENERAL and CENTURIA OFFICE
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and CENTURIA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between FUYO GENERAL and CENTURIA OFFICE
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 1.1 times more return on investment than CENTURIA OFFICE. However, FUYO GENERAL is 1.1 times more volatile than CENTURIA OFFICE REIT. It trades about 0.24 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.11 per unit of risk. If you would invest 6,450 in FUYO GENERAL LEASE on August 30, 2024 and sell it today you would earn a total of 450.00 from holding FUYO GENERAL LEASE or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| CENTURIA OFFICE REIT |
FUYO GENERAL and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and CENTURIA OFFICE
The main advantage of trading using opposite FUYO GENERAL and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, CENTURIA 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB | FUYO GENERAL vs. Talanx AG | FUYO GENERAL vs. 2G ENERGY |
| CENTURIA OFFICE vs. Media and Games | CENTURIA OFFICE vs. ADRIATIC METALS LS 013355 | CENTURIA OFFICE vs. Scientific Games | CENTURIA OFFICE vs. GameStop 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |