Correlation Between Citycon Oyj and FRASERS PROPERTY

Can any of the company-specific risk be diversified away by investing in both Citycon Oyj and FRASERS PROPERTY 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 Citycon Oyj and FRASERS PROPERTY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citycon Oyj and FRASERS PROPERTY, you can compare the effects of market volatilities on Citycon Oyj and FRASERS PROPERTY 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 Citycon Oyj with a short position of FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citycon Oyj and FRASERS PROPERTY.

Diversification Opportunities for Citycon Oyj and FRASERS PROPERTY

-0.2

Correlation Coefficient

Citycon Oyj  FRASERS PROPERTY

Good diversification

The 3 months correlation between Citycon and FRASERS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citycon Oyj and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY and Citycon Oyj 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 Citycon Oyj are associated (or correlated) with FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of Citycon Oyj i.e., Citycon Oyj and FRASERS PROPERTY go up and down completely randomly.

Pair Corralation between Citycon Oyj and FRASERS PROPERTY

Assuming the 90 days trading horizon Citycon Oyj is expected to under-perform the FRASERS PROPERTY. But the stock apears to be less risky and, when comparing its historical volatility, Citycon Oyj is 1.06 times less risky than FRASERS PROPERTY. The stock trades about -0.05 of its potential returns per unit of risk. The FRASERS PROPERTY is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  57.00  in FRASERS PROPERTY on October 10, 2024 and sell it today you would earn a total of  8.00  from holding FRASERS PROPERTY or generate 14.04% return on investment over 90 days.

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

Citycon Oyj  vs.  FRASERS PROPERTY

Citycon Oyj

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citycon Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

FRASERS PROPERTY

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FRASERS PROPERTY are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FRASERS PROPERTY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Citycon Oyj and FRASERS PROPERTY

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

The idea behind Citycon Oyj and FRASERS PROPERTY 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.