Correlation Between Corporate Office and GOING PUBL

Can any of the company-specific risk be diversified away by investing in both Corporate Office and GOING PUBL 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 Corporate Office and GOING PUBL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Corporate Office Properties and GOING PUBL MEDIA, you can compare the effects of market volatilities on Corporate Office and GOING PUBL 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 Corporate Office with a short position of GOING PUBL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and GOING PUBL.

Diversification Opportunities for Corporate Office and GOING PUBL

-0.58

Correlation Coefficient

Corporate Office  GOING PUBL

Excellent diversification

The 3 months correlation between Corporate and GOING is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and GOING PUBL MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOING PUBL MEDIA and Corporate Office 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 Corporate Office Properties are associated (or correlated) with GOING PUBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOING PUBL MEDIA has no effect on the direction of Corporate Office i.e., Corporate Office and GOING PUBL go up and down completely randomly.

Pair Corralation between Corporate Office and GOING PUBL

Assuming the 90 days horizon Corporate Office Properties is expected to generate 0.6 times more return on investment than GOING PUBL. However, Corporate Office Properties is 1.66 times less risky than GOING PUBL. It trades about 0.1 of its potential returns per unit of risk. GOING PUBL MEDIA is currently generating about -0.02 per unit of risk. If you would invest  2,169  in Corporate Office Properties on October 3, 2024 and sell it today you would earn a total of  771.00  from holding Corporate Office Properties or generate 35.55% return on investment over 90 days.

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

Corporate Office Properties  vs.  GOING PUBL MEDIA

Corporate Office Pro

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corporate Office Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Corporate Office is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

GOING PUBL MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Corporate Office and GOING PUBL

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

The idea behind Corporate Office Properties and GOING PUBL MEDIA 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.