Correlation Between Centuria Industrial and Pointsbet Holdings

Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and Pointsbet Holdings 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 Industrial and Pointsbet Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Centuria Industrial Reit and Pointsbet Holdings, you can compare the effects of market volatilities on Centuria Industrial and Pointsbet Holdings 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 Industrial with a short position of Pointsbet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Pointsbet Holdings.

Diversification Opportunities for Centuria Industrial and Pointsbet Holdings

-0.89

Correlation Coefficient

Centuria Industrial  Pointsbet Holdings

Pay attention - limited upside

The 3 months correlation between Centuria and Pointsbet is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and Pointsbet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pointsbet Holdings and Centuria Industrial 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 Industrial Reit are associated (or correlated) with Pointsbet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pointsbet Holdings has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and Pointsbet Holdings go up and down completely randomly.

Pair Corralation between Centuria Industrial and Pointsbet Holdings

Assuming the 90 days trading horizon Centuria Industrial Reit is expected to under-perform the Pointsbet Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Centuria Industrial Reit is 4.27 times less risky than Pointsbet Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The Pointsbet Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  47.00  in Pointsbet Holdings on September 21, 2024 and sell it today you would earn a total of  53.00  from holding Pointsbet Holdings or generate 112.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Centuria Industrial Reit  vs.  Pointsbet Holdings

Centuria Industrial Reit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Centuria Industrial Reit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pointsbet Holdings

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pointsbet Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Pointsbet Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Centuria Industrial and Pointsbet Holdings

The main advantage of trading using opposite Centuria Industrial and Pointsbet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, Pointsbet Holdings 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 Pointsbet Holdings will offset losses from the drop in Pointsbet Holdings' long position.

The idea behind Centuria Industrial Reit and Pointsbet Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.