Correlation Between Grand Canyon and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Grand Canyon 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 Grand Canyon and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canyon Education and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Grand Canyon 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 Grand Canyon with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canyon and CENTURIA OFFICE.
Diversification Opportunities for Grand Canyon and CENTURIA OFFICE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and CENTURIA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education 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 Grand Canyon 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 Grand Canyon Education 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 Grand Canyon i.e., Grand Canyon and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Grand Canyon and CENTURIA OFFICE
Assuming the 90 days horizon Grand Canyon Education is expected to generate 0.71 times more return on investment than CENTURIA OFFICE. However, Grand Canyon Education is 1.42 times less risky than CENTURIA OFFICE. It trades about 0.34 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.01 per unit of risk. If you would invest 15,600 in Grand Canyon Education on November 7, 2024 and sell it today you would earn a total of 1,300 from holding Grand Canyon Education or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Canyon Education vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| Grand Canyon Education |
| CENTURIA OFFICE REIT |
Grand Canyon and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canyon and CENTURIA OFFICE
The main advantage of trading using opposite Grand Canyon and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canyon 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.| Grand Canyon vs. SWISS WATER DECAFFCOFFEE | Grand Canyon vs. HYATT HOTELS A | Grand Canyon vs. Darden Restaurants | Grand Canyon vs. EITZEN CHEMICALS |
| CENTURIA OFFICE vs. CN MODERN DAIRY | CENTURIA OFFICE vs. Air Transport Services | CENTURIA OFFICE vs. Texas Roadhouse | CENTURIA OFFICE vs. Axfood AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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