Correlation Between CENTURIA OFFICE and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE and Cogent Communications 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 CENTURIA OFFICE and Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and Cogent Communications Holdings, you can compare the effects of market volatilities on CENTURIA OFFICE and Cogent Communications 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 CENTURIA OFFICE with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Cogent Communications.
Diversification Opportunities for CENTURIA OFFICE and Cogent Communications
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CENTURIA and Cogent is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and CENTURIA 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 CENTURIA OFFICE REIT are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Cogent Communications go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Cogent Communications
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to under-perform the Cogent Communications. But the stock apears to be less risky and, when comparing its historical volatility, CENTURIA OFFICE REIT is 1.31 times less risky than Cogent Communications. The stock trades about -0.19 of its potential returns per unit of risk. The Cogent Communications Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 7,456 in Cogent Communications Holdings on September 23, 2024 and sell it today you would lose (156.00) from holding Cogent Communications Holdings or give up 2.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CENTURIA OFFICE REIT vs. Cogent Communications Holdings
Performance |
Timeline |
CENTURIA OFFICE REIT |
Cogent Communications |
CENTURIA OFFICE and Cogent Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CENTURIA OFFICE and Cogent Communications
The main advantage of trading using opposite CENTURIA OFFICE and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.CENTURIA OFFICE vs. LG Electronics | CENTURIA OFFICE vs. Richardson Electronics | CENTURIA OFFICE vs. ELECTRONIC ARTS | CENTURIA OFFICE vs. Meiko Electronics Co |
Cogent Communications vs. T Mobile | Cogent Communications vs. China Mobile Limited | Cogent Communications vs. Verizon Communications | Cogent Communications vs. ATT Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |