Correlation Between CARSALESCOM and SEGRO Plc
Can any of the company-specific risk be diversified away by investing in both CARSALESCOM and SEGRO Plc 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 CARSALESCOM and SEGRO Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and SEGRO Plc, you can compare the effects of market volatilities on CARSALESCOM and SEGRO Plc 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 CARSALESCOM with a short position of SEGRO Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALESCOM and SEGRO Plc.
Diversification Opportunities for CARSALESCOM and SEGRO Plc
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CARSALESCOM and SEGRO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and SEGRO Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEGRO Plc and CARSALESCOM 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 CARSALESCOM are associated (or correlated) with SEGRO Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEGRO Plc has no effect on the direction of CARSALESCOM i.e., CARSALESCOM and SEGRO Plc go up and down completely randomly.
Pair Corralation between CARSALESCOM and SEGRO Plc
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.7 times more return on investment than SEGRO Plc. However, CARSALESCOM is 1.42 times less risky than SEGRO Plc. It trades about 0.09 of its potential returns per unit of risk. SEGRO Plc is currently generating about 0.02 per unit of risk. If you would invest 1,218 in CARSALESCOM on September 12, 2024 and sell it today you would earn a total of 1,162 from holding CARSALESCOM or generate 95.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CARSALESCOM vs. SEGRO Plc
Performance |
| Timeline |
| CARSALESCOM |
| SEGRO Plc |
CARSALESCOM and SEGRO Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALESCOM and SEGRO Plc
The main advantage of trading using opposite CARSALESCOM and SEGRO Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALESCOM position performs unexpectedly, SEGRO Plc 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 SEGRO Plc will offset losses from the drop in SEGRO Plc's long position.| CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc |
| SEGRO Plc vs. GEELY AUTOMOBILE | SEGRO Plc vs. CARSALESCOM | SEGRO Plc vs. CarsalesCom | SEGRO Plc vs. CENTURIA OFFICE REIT |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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