Correlation Between Vicinity Centres and Carindale Property
Can any of the company-specific risk be diversified away by investing in both Vicinity Centres and Carindale Property 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 Vicinity Centres and Carindale Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vicinity Centres Re and Carindale Property Trust, you can compare the effects of market volatilities on Vicinity Centres and Carindale Property 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 Vicinity Centres with a short position of Carindale Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicinity Centres and Carindale Property.
Diversification Opportunities for Vicinity Centres and Carindale Property
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vicinity and Carindale is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vicinity Centres Re and Carindale Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carindale Property Trust and Vicinity Centres 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 Vicinity Centres Re are associated (or correlated) with Carindale Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carindale Property Trust has no effect on the direction of Vicinity Centres i.e., Vicinity Centres and Carindale Property go up and down completely randomly.
Pair Corralation between Vicinity Centres and Carindale Property
Assuming the 90 days trading horizon Vicinity Centres Re is expected to generate 1.23 times more return on investment than Carindale Property. However, Vicinity Centres is 1.23 times more volatile than Carindale Property Trust. It trades about 0.09 of its potential returns per unit of risk. Carindale Property Trust is currently generating about 0.09 per unit of risk. If you would invest 190.00 in Vicinity Centres Re on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Vicinity Centres Re or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vicinity Centres Re vs. Carindale Property Trust
Performance |
| Timeline |
| Vicinity Centres |
| Carindale Property Trust |
Vicinity Centres and Carindale Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vicinity Centres and Carindale Property
The main advantage of trading using opposite Vicinity Centres and Carindale Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicinity Centres position performs unexpectedly, Carindale Property 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 Carindale Property will offset losses from the drop in Carindale Property's long position.| Vicinity Centres vs. Bank of Queensland | Vicinity Centres vs. Commonwealth Bank of | Vicinity Centres vs. Red Hill Iron | Vicinity Centres vs. Bisalloy Steel Group |
| Carindale Property vs. Cromwell Property Group | Carindale Property vs. GDI Property Group | Carindale Property vs. Australian Unity Office |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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