Correlation Between Centuria Office and Actinogen Medical

Can any of the company-specific risk be diversified away by investing in both Centuria Office and Actinogen Medical 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 Actinogen Medical 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 Actinogen Medical, you can compare the effects of market volatilities on Centuria Office and Actinogen Medical 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 Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Office and Actinogen Medical.

Diversification Opportunities for Centuria Office and Actinogen Medical

-0.43

Correlation Coefficient

Centuria Office  Actinogen Medical

Very good diversification

The 3 months correlation between Centuria and Actinogen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Office REIT and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical 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 Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Centuria Office i.e., Centuria Office and Actinogen Medical go up and down completely randomly.

Pair Corralation between Centuria Office and Actinogen Medical

Assuming the 90 days trading horizon Centuria Office REIT is expected to generate 0.3 times more return on investment than Actinogen Medical. However, Centuria Office REIT is 3.34 times less risky than Actinogen Medical. It trades about 0.04 of its potential returns per unit of risk. Actinogen Medical is currently generating about -0.05 per unit of risk. If you would invest  112.00  in Centuria Office REIT on April 5, 2025 and sell it today you would earn a total of  3.00  from holding Centuria Office REIT or generate 2.68% return on investment over 90 days.

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

Centuria Office REIT  vs.  Actinogen Medical

Centuria Office REIT

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Centuria Office REIT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Centuria Office is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Actinogen Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Actinogen Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Centuria Office and Actinogen Medical

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

The idea behind Centuria Office REIT and Actinogen Medical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.