Correlation Between Ming Le and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Ming Le 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 Ming Le and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Le Sports and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Ming Le 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 Ming Le with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and CENTURIA OFFICE.
Diversification Opportunities for Ming Le and CENTURIA OFFICE
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ming and CENTURIA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports 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 Ming Le 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 Ming Le Sports 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 Ming Le i.e., Ming Le and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Ming Le and CENTURIA OFFICE
Assuming the 90 days trading horizon Ming Le Sports is expected to generate 2.15 times more return on investment than CENTURIA OFFICE. However, Ming Le is 2.15 times more volatile than CENTURIA OFFICE REIT. It trades about 0.03 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.04 per unit of risk. If you would invest 103.00 in Ming Le Sports on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Ming Le Sports or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Le Sports vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| Ming Le Sports |
| CENTURIA OFFICE REIT |
Ming Le and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Le and CENTURIA OFFICE
The main advantage of trading using opposite Ming Le and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le 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.| Ming Le vs. Tradegate AG Wertpapierhandelsbank | Ming Le vs. H2O Retailing | Ming Le vs. Jacquet Metal Service | Ming Le vs. Canon Marketing Japan |
| CENTURIA OFFICE vs. VARIOUS EATERIES LS | CENTURIA OFFICE vs. Costco Wholesale | CENTURIA OFFICE vs. Caseys General Stores | CENTURIA OFFICE vs. PICKN PAY STORES |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |