Correlation Between ASTRA GRAPHIA and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both ASTRA GRAPHIA 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 ASTRA GRAPHIA and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA GRAPHIA and CITY OFFICE REIT, you can compare the effects of market volatilities on ASTRA GRAPHIA 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 ASTRA GRAPHIA with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA GRAPHIA and CITY OFFICE.
Diversification Opportunities for ASTRA GRAPHIA and CITY OFFICE
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASTRA and CITY is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA GRAPHIA 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 ASTRA GRAPHIA 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 GRAPHIA 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 ASTRA GRAPHIA i.e., ASTRA GRAPHIA and CITY OFFICE go up and down completely randomly.
Pair Corralation between ASTRA GRAPHIA and CITY OFFICE
Assuming the 90 days trading horizon ASTRA GRAPHIA is expected to under-perform the CITY OFFICE. But the stock apears to be less risky and, when comparing its historical volatility, ASTRA GRAPHIA is 1.09 times less risky than CITY OFFICE. The stock trades about -0.05 of its potential returns per unit of risk. The CITY OFFICE REIT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 525.00 in CITY OFFICE REIT on October 10, 2024 and sell it today you would earn a total of 10.00 from holding CITY OFFICE REIT or generate 1.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ASTRA GRAPHIA vs. CITY OFFICE REIT
Performance |
Timeline |
ASTRA GRAPHIA |
CITY OFFICE REIT |
ASTRA GRAPHIA and CITY OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASTRA GRAPHIA and CITY OFFICE
The main advantage of trading using opposite ASTRA GRAPHIA and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA GRAPHIA 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.ASTRA GRAPHIA vs. JAPAN AIRLINES | ASTRA GRAPHIA vs. SINGAPORE AIRLINES | ASTRA GRAPHIA vs. Sumitomo Rubber Industries | ASTRA GRAPHIA vs. APPLIED MATERIALS |
CITY OFFICE vs. Hyrican Informationssysteme Aktiengesellschaft | CITY OFFICE vs. EBRO FOODS | CITY OFFICE vs. SILVER BULLET DATA | CITY OFFICE vs. INFORMATION SVC GRP |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |