Correlation Between Corporate Office and Cellink AB
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Cellink AB 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 Cellink AB 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 Cellink AB, you can compare the effects of market volatilities on Corporate Office and Cellink AB 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 Cellink AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Cellink AB.
Diversification Opportunities for Corporate Office and Cellink AB
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corporate and Cellink is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Cellink AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellink AB 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 Cellink AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellink AB has no effect on the direction of Corporate Office i.e., Corporate Office and Cellink AB go up and down completely randomly.
Pair Corralation between Corporate Office and Cellink AB
Assuming the 90 days horizon Corporate Office Properties is expected to generate 0.29 times more return on investment than Cellink AB. However, Corporate Office Properties is 3.47 times less risky than Cellink AB. It trades about 0.04 of its potential returns per unit of risk. Cellink AB is currently generating about 0.01 per unit of risk. If you would invest 2,045 in Corporate Office Properties on December 4, 2024 and sell it today you would earn a total of 495.00 from holding Corporate Office Properties or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Corporate Office Properties vs. Cellink AB
Performance |
| Timeline |
| Corporate Office Pro |
| Cellink AB |
Corporate Office and Cellink AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Cellink AB
The main advantage of trading using opposite Corporate Office and Cellink AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Cellink AB 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 Cellink AB will offset losses from the drop in Cellink AB's long position.| Corporate Office vs. PSI Software AG | Corporate Office vs. BII Railway Transportation | Corporate Office vs. CyberArk Software | Corporate Office vs. Kingdee International Software |
| Cellink AB vs. Iridium Communications | Cellink AB vs. CALTAGIRONE EDITORE | Cellink AB vs. BlueScope Steel Limited | Cellink AB vs. Daido Steel Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |