Correlation Between VIAPLAY GROUP and CENTURIA OFFICE

Can any of the company-specific risk be diversified away by investing in both VIAPLAY GROUP 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 VIAPLAY GROUP and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIAPLAY GROUP AB and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on VIAPLAY GROUP 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 VIAPLAY GROUP with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIAPLAY GROUP and CENTURIA OFFICE.

Diversification Opportunities for VIAPLAY GROUP and CENTURIA OFFICE

0.54

Correlation Coefficient

VIAPLAY GROUP  CENTURIA OFFICE

Very weak diversification

The 3 months correlation between VIAPLAY and CENTURIA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding VIAPLAY GROUP AB 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 VIAPLAY GROUP 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 VIAPLAY GROUP AB 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 VIAPLAY GROUP i.e., VIAPLAY GROUP and CENTURIA OFFICE go up and down completely randomly.

Pair Corralation between VIAPLAY GROUP and CENTURIA OFFICE

Assuming the 90 days horizon VIAPLAY GROUP AB is expected to generate 2.27 times more return on investment than CENTURIA OFFICE. However, VIAPLAY GROUP is 2.27 times more volatile than CENTURIA OFFICE REIT. It trades about 0.02 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about -0.05 per unit of risk. If you would invest  5.93  in VIAPLAY GROUP AB on October 7, 2024 and sell it today you would earn a total of  0.00  from holding VIAPLAY GROUP AB or generate 0.0% return on investment over 90 days.

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

VIAPLAY GROUP AB  vs.  CENTURIA OFFICE REIT

VIAPLAY GROUP AB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VIAPLAY GROUP AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, VIAPLAY GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CENTURIA OFFICE REIT

Risk-Adjusted Performance

0 of 100

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIAPLAY GROUP and CENTURIA OFFICE

The main advantage of trading using opposite VIAPLAY GROUP and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIAPLAY GROUP 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 VIAPLAY GROUP AB 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.