Correlation Between Charter Hall and Cleanspace Holdings

Can any of the company-specific risk be diversified away by investing in both Charter Hall and Cleanspace Holdings 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 Charter Hall and Cleanspace Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Charter Hall Retail and Cleanspace Holdings, you can compare the effects of market volatilities on Charter Hall and Cleanspace Holdings 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 Charter Hall with a short position of Cleanspace Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Cleanspace Holdings.

Diversification Opportunities for Charter Hall and Cleanspace Holdings

0.33

Correlation Coefficient

Charter Hall  Cleanspace Holdings

Weak diversification

The 3 months correlation between Charter and Cleanspace is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Retail and Cleanspace Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanspace Holdings and Charter Hall 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 Charter Hall Retail are associated (or correlated) with Cleanspace Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanspace Holdings has no effect on the direction of Charter Hall i.e., Charter Hall and Cleanspace Holdings go up and down completely randomly.

Pair Corralation between Charter Hall and Cleanspace Holdings

Assuming the 90 days trading horizon Charter Hall is expected to generate 9.65 times less return on investment than Cleanspace Holdings. But when comparing it to its historical volatility, Charter Hall Retail is 4.91 times less risky than Cleanspace Holdings. It trades about 0.12 of its potential returns per unit of risk. Cleanspace Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Cleanspace Holdings on April 24, 2025 and sell it today you would earn a total of  31.00  from holding Cleanspace Holdings or generate 79.49% return on investment over 90 days.

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

Charter Hall Retail  vs.  Cleanspace Holdings

Charter Hall Retail

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Charter Hall Retail are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Charter Hall may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cleanspace Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cleanspace Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cleanspace Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Charter Hall and Cleanspace Holdings

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

The idea behind Charter Hall Retail and Cleanspace Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.