Correlation Between Office Properties and Tricon Capital
Can any of the company-specific risk be diversified away by investing in both Office Properties and Tricon Capital 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 Office Properties and Tricon Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Office Properties Income and Tricon Capital Group, you can compare the effects of market volatilities on Office Properties and Tricon Capital 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 Office Properties with a short position of Tricon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Office Properties and Tricon Capital.
Diversification Opportunities for Office Properties and Tricon Capital
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Office and Tricon is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Office Properties Income and Tricon Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tricon Capital Group and Office Properties 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 Office Properties Income are associated (or correlated) with Tricon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tricon Capital Group has no effect on the direction of Office Properties i.e., Office Properties and Tricon Capital go up and down completely randomly.
Pair Corralation between Office Properties and Tricon Capital
Assuming the 90 days horizon Office Properties Income is expected to under-perform the Tricon Capital. In addition to that, Office Properties is 1.27 times more volatile than Tricon Capital Group. It trades about 0.0 of its total potential returns per unit of risk. Tricon Capital Group is currently generating about 0.08 per unit of volatility. If you would invest 782.00 in Tricon Capital Group on September 4, 2024 and sell it today you would earn a total of 156.00 from holding Tricon Capital Group or generate 19.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Office Properties Income vs. Tricon Capital Group
Performance |
| Timeline |
| Office Properties Income |
| Tricon Capital Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Office Properties and Tricon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Office Properties and Tricon Capital
The main advantage of trading using opposite Office Properties and Tricon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Office Properties position performs unexpectedly, Tricon Capital 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 Tricon Capital will offset losses from the drop in Tricon Capital's long position.| Office Properties vs. United States Cellular | Office Properties vs. United States Cellular | Office Properties vs. DBA Sempra 5750 | Office Properties vs. Hancock Whitney |
| Tricon Capital vs. Marcus Millichap | Tricon Capital vs. Frp Holdings Ord | Tricon Capital vs. Maui Land Pineapple | Tricon Capital vs. Brookfield Property Partners |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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