Correlation Between Creative Media and City Office
Can any of the company-specific risk be diversified away by investing in both Creative Media 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 Creative Media and City Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creative Media Community and City Office REIT, you can compare the effects of market volatilities on Creative Media 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 Creative Media with a short position of City Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Media and City Office.
Diversification Opportunities for Creative Media and City Office
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creative and City is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Creative Media Community 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 Creative Media 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 Creative Media Community 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 Creative Media i.e., Creative Media and City Office go up and down completely randomly.
Pair Corralation between Creative Media and City Office
Given the investment horizon of 90 days Creative Media Community is expected to under-perform the City Office. In addition to that, Creative Media is 1.72 times more volatile than City Office REIT. It trades about -0.13 of its total potential returns per unit of risk. City Office REIT is currently generating about 0.05 per unit of volatility. If you would invest 1,695 in City Office REIT on March 4, 2024 and sell it today you would earn a total of 65.00 from holding City Office REIT or generate 3.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Creative Media Community vs. City Office REIT
Performance |
Timeline |
Creative Media Community |
City Office REIT |
Creative Media and City Office Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creative Media and City Office
The main advantage of trading using opposite Creative Media and City Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Media 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.Creative Media vs. Cousins Properties Incorporated | Creative Media vs. Highwoods Properties | Creative Media vs. Douglas Emmett | Creative Media vs. Equity Commonwealth |
City Office vs. Cousins Properties Incorporated | City Office vs. Franklin Street Properties | City Office vs. Creative Media Community | City Office vs. Vornado Realty Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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