Correlation Between Corporate Office and Munters Group
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Munters Group 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 Munters Group 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 Munters Group AB, you can compare the effects of market volatilities on Corporate Office and Munters Group 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 Munters Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Munters Group.
Diversification Opportunities for Corporate Office and Munters Group
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Corporate and Munters is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Munters Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munters Group AB 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 Munters Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munters Group AB has no effect on the direction of Corporate Office i.e., Corporate Office and Munters Group go up and down completely randomly.
Pair Corralation between Corporate Office and Munters Group
Assuming the 90 days horizon Corporate Office Properties is expected to under-perform the Munters Group. But the stock apears to be less risky and, when comparing its historical volatility, Corporate Office Properties is 3.82 times less risky than Munters Group. The stock trades about -0.07 of its potential returns per unit of risk. The Munters Group AB is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Munters Group AB on September 12, 2025 and sell it today you would earn a total of 537.00 from holding Munters Group AB or generate 47.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. Munters Group AB
Performance |
| Timeline |
| Corporate Office Pro |
| Munters Group AB |
Corporate Office and Munters Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Munters Group
The main advantage of trading using opposite Corporate Office and Munters Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Munters Group 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 Munters Group will offset losses from the drop in Munters Group's long position.| Corporate Office vs. Digital Realty Trust | Corporate Office vs. Gecina SA | Corporate Office vs. Japan Real Estate | Corporate Office vs. Kilroy Realty Corp |
| Munters Group vs. HELIOS TECHS INC | Munters Group vs. EAT WELL INVESTMENT | Munters Group vs. Firan Technology Group | Munters Group vs. Semtech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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