Correlation Between CSPC PHARMACEUTGR and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both CSPC PHARMACEUTGR and CITY 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 CSPC PHARMACEUTGR and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSPC PHARMACEUTGR ADR4 and CITY OFFICE REIT, you can compare the effects of market volatilities on CSPC PHARMACEUTGR and CITY 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 CSPC PHARMACEUTGR with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSPC PHARMACEUTGR and CITY OFFICE.
Diversification Opportunities for CSPC PHARMACEUTGR and CITY OFFICE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSPC and CITY is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CSPC PHARMACEUTGR ADR4 and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT and CSPC PHARMACEUTGR 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 CSPC PHARMACEUTGR ADR4 are associated (or correlated) with CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of CSPC PHARMACEUTGR i.e., CSPC PHARMACEUTGR and CITY OFFICE go up and down completely randomly.
Pair Corralation between CSPC PHARMACEUTGR and CITY OFFICE
Assuming the 90 days trading horizon CSPC PHARMACEUTGR ADR4 is expected to under-perform the CITY OFFICE. In addition to that, CSPC PHARMACEUTGR is 1.27 times more volatile than CITY OFFICE REIT. It trades about -0.03 of its total potential returns per unit of risk. CITY OFFICE REIT is currently generating about -0.01 per unit of volatility. If you would invest 510.00 in CITY OFFICE REIT on December 27, 2024 and sell it today you would lose (16.00) from holding CITY OFFICE REIT or give up 3.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CSPC PHARMACEUTGR ADR4 vs. CITY OFFICE REIT
Performance |
Timeline |
CSPC PHARMACEUTGR ADR4 |
CITY OFFICE REIT |
CSPC PHARMACEUTGR and CITY OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSPC PHARMACEUTGR and CITY OFFICE
The main advantage of trading using opposite CSPC PHARMACEUTGR and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSPC PHARMACEUTGR position performs unexpectedly, CITY 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.CSPC PHARMACEUTGR vs. SPORTING | CSPC PHARMACEUTGR vs. DICKS Sporting Goods | CSPC PHARMACEUTGR vs. Mitsui Chemicals | CSPC PHARMACEUTGR vs. EITZEN CHEMICALS |
CITY OFFICE vs. Scandic Hotels Group | CITY OFFICE vs. MPH Health Care | CITY OFFICE vs. Choice Hotels International | CITY OFFICE vs. REGAL HOTEL INTL |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |