Correlation Between ASTRA INTERNATIONAL and CENTURIA OFFICE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and CENTURIA OFFICE 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 ASTRA INTERNATIONAL and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and CENTURIA OFFICE 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 ASTRA INTERNATIONAL with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and CENTURIA OFFICE.

Diversification Opportunities for ASTRA INTERNATIONAL and CENTURIA OFFICE

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between ASTRA and CENTURIA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL are associated (or correlated) with CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and CENTURIA OFFICE go up and down completely randomly.

Pair Corralation between ASTRA INTERNATIONAL and CENTURIA OFFICE

Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 9.4 times less return on investment than CENTURIA OFFICE. In addition to that, ASTRA INTERNATIONAL is 1.08 times more volatile than CENTURIA OFFICE REIT. It trades about 0.02 of its total potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.16 per unit of volatility. If you would invest  63.00  in CENTURIA OFFICE REIT on October 10, 2024 and sell it today you would earn a total of  5.00  from holding CENTURIA OFFICE REIT or generate 7.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy94.44%
ValuesDaily Returns

ASTRA INTERNATIONAL  vs.  CENTURIA OFFICE REIT

 Performance 
       Timeline  
ASTRA INTERNATIONAL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASTRA INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ASTRA INTERNATIONAL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
CENTURIA OFFICE REIT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CENTURIA OFFICE REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CENTURIA OFFICE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ASTRA INTERNATIONAL and CENTURIA OFFICE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASTRA INTERNATIONAL and CENTURIA OFFICE

The main advantage of trading using opposite ASTRA INTERNATIONAL and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.
The idea behind ASTRA INTERNATIONAL and CENTURIA OFFICE REIT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Bonds Directory
Find actively traded corporate debentures issued by US companies
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios