Correlation Between Corporate Office and ImagineAR
Can any of the company-specific risk be diversified away by investing in both Corporate Office and ImagineAR 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 ImagineAR 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 ImagineAR, you can compare the effects of market volatilities on Corporate Office and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and ImagineAR.
Diversification Opportunities for Corporate Office and ImagineAR
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Corporate and ImagineAR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of Corporate Office i.e., Corporate Office and ImagineAR go up and down completely randomly.
Pair Corralation between Corporate Office and ImagineAR
Assuming the 90 days horizon Corporate Office Properties is expected to generate 0.12 times more return on investment than ImagineAR. However, Corporate Office Properties is 8.29 times less risky than ImagineAR. It trades about -0.16 of its potential returns per unit of risk. ImagineAR is currently generating about -0.27 per unit of risk. If you would invest 3,060 in Corporate Office Properties on September 24, 2024 and sell it today you would lose (100.00) from holding Corporate Office Properties or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. ImagineAR
Performance |
| Timeline |
| Corporate Office Pro |
| ImagineAR |
Corporate Office and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and ImagineAR
The main advantage of trading using opposite Corporate Office and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| Corporate Office vs. Digital Realty Trust | Corporate Office vs. Gecina SA | Corporate Office vs. Japan Real Estate | Corporate Office vs. SL Green Realty |
| ImagineAR vs. Corporate Office Properties | ImagineAR vs. SBM OFFSHORE | ImagineAR vs. Salesforce | ImagineAR vs. CARSALESCOM |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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