Correlation Between Corem Property and Logistea A

Can any of the company-specific risk be diversified away by investing in both Corem Property and Logistea A 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 Corem Property and Logistea A into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Corem Property Group and Logistea A, you can compare the effects of market volatilities on Corem Property and Logistea A 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 Corem Property with a short position of Logistea A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and Logistea A.

Diversification Opportunities for Corem Property and Logistea A

0.36

Correlation Coefficient

Corem Property  Logistea A

Weak diversification

The 3 months correlation between Corem and Logistea is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and Logistea A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea A and Corem Property 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 Corem Property Group are associated (or correlated) with Logistea A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea A has no effect on the direction of Corem Property i.e., Corem Property and Logistea A go up and down completely randomly.

Pair Corralation between Corem Property and Logistea A

Assuming the 90 days trading horizon Corem Property Group is expected to under-perform the Logistea A. In addition to that, Corem Property is 1.34 times more volatile than Logistea A. It trades about -0.01 of its total potential returns per unit of risk. Logistea A is currently generating about 0.12 per unit of volatility. If you would invest  1,375  in Logistea A on April 22, 2025 and sell it today you would earn a total of  235.00  from holding Logistea A or generate 17.09% return on investment over 90 days.

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

Corem Property Group  vs.  Logistea A

Corem Property Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corem Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Corem Property is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Logistea A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logistea A are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Logistea A sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corem Property and Logistea A

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

The idea behind Corem Property Group and Logistea A 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.