Correlation Between CENTURIA OFFICE and SEGRO Plc
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE 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 CENTURIA OFFICE and SEGRO Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and SEGRO Plc, you can compare the effects of market volatilities on CENTURIA OFFICE 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 CENTURIA OFFICE with a short position of SEGRO Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and SEGRO Plc.
Diversification Opportunities for CENTURIA OFFICE and SEGRO Plc
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CENTURIA and SEGRO is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and SEGRO Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEGRO Plc and CENTURIA 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 CENTURIA OFFICE REIT 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 CENTURIA OFFICE i.e., CENTURIA OFFICE and SEGRO Plc go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and SEGRO Plc
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 1.19 times more return on investment than SEGRO Plc. However, CENTURIA OFFICE is 1.19 times more volatile than SEGRO Plc. It trades about 0.1 of its potential returns per unit of risk. SEGRO Plc is currently generating about 0.02 per unit of risk. If you would invest 58.00 in CENTURIA OFFICE REIT on December 29, 2024 and sell it today you would earn a total of 7.00 from holding CENTURIA OFFICE REIT or generate 12.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CENTURIA OFFICE REIT vs. SEGRO Plc
Performance |
Timeline |
CENTURIA OFFICE REIT |
SEGRO Plc |
CENTURIA OFFICE and SEGRO Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CENTURIA OFFICE and SEGRO Plc
The main advantage of trading using opposite CENTURIA OFFICE and SEGRO Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE 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.CENTURIA OFFICE vs. AUST AGRICULTURAL | CENTURIA OFFICE vs. KIMBALL ELECTRONICS | CENTURIA OFFICE vs. FARM 51 GROUP | CENTURIA OFFICE vs. DAIRY FARM INTL |
SEGRO Plc vs. Vulcan Materials | SEGRO Plc vs. APPLIED MATERIALS | SEGRO Plc vs. NH HOTEL GROUP | SEGRO Plc vs. InterContinental Hotels Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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