Correlation Between Erf Wireless and City Office

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Can any of the company-specific risk be diversified away by investing in both Erf Wireless 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 Erf Wireless and City Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erf Wireless and City Office REIT, you can compare the effects of market volatilities on Erf Wireless 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 Erf Wireless with a short position of City Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erf Wireless and City Office.

Diversification Opportunities for Erf Wireless and City Office

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Erf and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erf Wireless 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 Erf Wireless 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 Erf Wireless 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 Erf Wireless i.e., Erf Wireless and City Office go up and down completely randomly.

Pair Corralation between Erf Wireless and City Office

If you would invest  2,506  in City Office REIT on September 10, 2025 and sell it today you would earn a total of  16.00  from holding City Office REIT or generate 0.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.92%
ValuesDaily Returns

Erf Wireless  vs.  City Office REIT

 Performance 
       Timeline  
Erf Wireless 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Erf Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Erf Wireless is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
City Office REIT 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in City Office REIT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, City Office is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Erf Wireless and City Office Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Erf Wireless and City Office

The main advantage of trading using opposite Erf Wireless and City Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erf Wireless 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.
The idea behind Erf Wireless and City Office REIT 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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