Correlation Between Corporate Office and Strer SE
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Strer SE 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 Strer SE 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 Strer SE Co, you can compare the effects of market volatilities on Corporate Office and Strer SE 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 Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Strer SE.
Diversification Opportunities for Corporate Office and Strer SE
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corporate and Strer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE 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 Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of Corporate Office i.e., Corporate Office and Strer SE go up and down completely randomly.
Pair Corralation between Corporate Office and Strer SE
Assuming the 90 days horizon Corporate Office Properties is expected to under-perform the Strer SE. In addition to that, Corporate Office is 1.51 times more volatile than Strer SE Co. It trades about -0.3 of its total potential returns per unit of risk. Strer SE Co is currently generating about 0.2 per unit of volatility. If you would invest 5,455 in Strer SE Co on November 18, 2024 and sell it today you would earn a total of 255.00 from holding Strer SE Co or generate 4.67% 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. Strer SE Co
Performance |
Timeline |
Corporate Office Pro |
Strer SE |
Corporate Office and Strer SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Corporate Office and Strer SE
The main advantage of trading using opposite Corporate Office and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.Corporate Office vs. Platinum Investment Management | ||
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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