Correlation Between Corporate Office and Office Properties
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Office Properties 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 Corporate Office and Office Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and Office Properties Income, you can compare the effects of market volatilities on Corporate Office and Office Properties 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 Corporate Office with a short position of Office Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Office Properties.
Diversification Opportunities for Corporate Office and Office Properties
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Corporate and Office is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Office Properties Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Office Properties Income and Corporate Office 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 Corporate Office Properties are associated (or correlated) with Office Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Office Properties Income has no effect on the direction of Corporate Office i.e., Corporate Office and Office Properties go up and down completely randomly.
Pair Corralation between Corporate Office and Office Properties
If you would invest (100.00) in Corporate Office Properties on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Corporate Office Properties or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Corporate Office Properties vs. Office Properties Income
Performance |
| Timeline |
| Corporate Office Pro |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Office Properties Income |
Corporate Office and Office Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Office Properties
The main advantage of trading using opposite Corporate Office and Office Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Office Properties 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 Office Properties will offset losses from the drop in Office Properties' long position.| Corporate Office vs. Highwoods Properties | Corporate Office vs. Piedmont Office Realty | Corporate Office vs. Douglas Emmett | Corporate Office vs. Kilroy Realty Corp |
| Office Properties vs. Hudson Pacific Properties | Office Properties vs. Piedmont Office Realty | Office Properties vs. City Office | Office Properties vs. Kilroy Realty 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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