Correlation Between Gecina SA and Corporate Office
Can any of the company-specific risk be diversified away by investing in both Gecina SA 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 Gecina SA and Corporate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gecina SA and Corporate Office Properties, you can compare the effects of market volatilities on Gecina SA 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 Gecina SA with a short position of Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gecina SA and Corporate Office.
Diversification Opportunities for Gecina SA and Corporate Office
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gecina and Corporate is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA 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 Gecina SA 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 Gecina SA 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 Gecina SA i.e., Gecina SA and Corporate Office go up and down completely randomly.
Pair Corralation between Gecina SA and Corporate Office
Assuming the 90 days trading horizon Gecina SA is expected to generate 5.52 times less return on investment than Corporate Office. But when comparing it to its historical volatility, Gecina SA is 1.04 times less risky than Corporate Office. It trades about 0.01 of its potential returns per unit of risk. Corporate Office Properties is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,547 in Corporate Office Properties on October 26, 2024 and sell it today you would earn a total of 273.00 from holding Corporate Office Properties or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gecina SA vs. Corporate Office Properties
Performance |
| Timeline |
| Gecina SA |
| Corporate Office Pro |
Gecina SA and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gecina SA and Corporate Office
The main advantage of trading using opposite Gecina SA and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gecina SA 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.| Gecina SA vs. TYSON FOODS A | Gecina SA vs. Tyson Foods | Gecina SA vs. CN MODERN DAIRY | Gecina SA vs. Nomad Foods |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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