Correlation Between CITY OFFICE and ATON GREEN

Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and ATON GREEN 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 CITY OFFICE and ATON GREEN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CITY OFFICE REIT and ATON GREEN STORAGE, you can compare the effects of market volatilities on CITY OFFICE and ATON GREEN 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 CITY OFFICE with a short position of ATON GREEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and ATON GREEN.

Diversification Opportunities for CITY OFFICE and ATON GREEN

0.3

Correlation Coefficient

CITY OFFICE  ATON GREEN

Weak diversification

The 3 months correlation between CITY and ATON is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and ATON GREEN STORAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON GREEN STORAGE and CITY 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 CITY OFFICE REIT are associated (or correlated) with ATON GREEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON GREEN STORAGE has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and ATON GREEN go up and down completely randomly.

Pair Corralation between CITY OFFICE and ATON GREEN

Assuming the 90 days horizon CITY OFFICE is expected to generate 4.27 times less return on investment than ATON GREEN. But when comparing it to its historical volatility, CITY OFFICE REIT is 2.57 times less risky than ATON GREEN. It trades about 0.07 of its potential returns per unit of risk. ATON GREEN STORAGE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  153.00  in ATON GREEN STORAGE on April 24, 2025 and sell it today you would earn a total of  50.00  from holding ATON GREEN STORAGE or generate 32.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CITY OFFICE REIT  vs.  ATON GREEN STORAGE

CITY OFFICE REIT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CITY OFFICE REIT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CITY OFFICE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ATON GREEN STORAGE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATON GREEN STORAGE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATON GREEN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITY OFFICE and ATON GREEN

The main advantage of trading using opposite CITY OFFICE and ATON GREEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, ATON GREEN 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 ATON GREEN will offset losses from the drop in ATON GREEN's long position.

The idea behind CITY OFFICE REIT and ATON GREEN STORAGE 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.