Correlation Between Canadian Utilities and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities 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 Canadian Utilities and CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Utilities Limited and CITY OFFICE REIT, you can compare the effects of market volatilities on Canadian Utilities 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 Canadian Utilities with a short position of CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and CITY OFFICE.
Diversification Opportunities for Canadian Utilities and CITY OFFICE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canadian and CITY is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited 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 Canadian Utilities 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 Canadian Utilities Limited 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 Canadian Utilities i.e., Canadian Utilities and CITY OFFICE go up and down completely randomly.
Pair Corralation between Canadian Utilities and CITY OFFICE
Assuming the 90 days horizon Canadian Utilities Limited is expected to generate 1.47 times more return on investment than CITY OFFICE. However, Canadian Utilities is 1.47 times more volatile than CITY OFFICE REIT. It trades about 0.18 of its potential returns per unit of risk. CITY OFFICE REIT is currently generating about 0.0 per unit of risk. If you would invest 2,316 in Canadian Utilities Limited on September 11, 2025 and sell it today you would earn a total of 269.00 from holding Canadian Utilities Limited or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Utilities Limited vs. CITY OFFICE REIT
Performance |
| Timeline |
| Canadian Utilities |
| CITY OFFICE REIT |
Canadian Utilities and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and CITY OFFICE
The main advantage of trading using opposite Canadian Utilities and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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.| Canadian Utilities vs. Dominion Energy | Canadian Utilities vs. Engie SA | Canadian Utilities vs. NMI Holdings | Canadian Utilities vs. Origin Agritech |
| CITY OFFICE vs. Office Properties Income | CITY OFFICE vs. Origin Agritech | CITY OFFICE vs. SIVERS SEMICONDUCTORS AB | CITY OFFICE vs. Intel |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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