Correlation Between Citycon Oyj and Immofinanz

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

By analyzing existing cross correlation between Citycon Oyj and Immofinanz AG, you can compare the effects of market volatilities on Citycon Oyj and Immofinanz 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 Citycon Oyj with a short position of Immofinanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citycon Oyj and Immofinanz.

Diversification Opportunities for Citycon Oyj and Immofinanz

0.57

Correlation Coefficient

Citycon Oyj  Immofinanz

Very weak diversification

The 3 months correlation between Citycon and Immofinanz is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citycon Oyj and Immofinanz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofinanz AG and Citycon Oyj 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 Citycon Oyj are associated (or correlated) with Immofinanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofinanz AG has no effect on the direction of Citycon Oyj i.e., Citycon Oyj and Immofinanz go up and down completely randomly.

Pair Corralation between Citycon Oyj and Immofinanz

Assuming the 90 days trading horizon Citycon Oyj is expected to generate 1.02 times more return on investment than Immofinanz. However, Citycon Oyj is 1.02 times more volatile than Immofinanz AG. It trades about 0.14 of its potential returns per unit of risk. Immofinanz AG is currently generating about 0.04 per unit of risk. If you would invest  334.00  in Citycon Oyj on April 24, 2025 and sell it today you would earn a total of  40.00  from holding Citycon Oyj or generate 11.98% return on investment over 90 days.

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

Citycon Oyj  vs.  Immofinanz AG

Citycon Oyj

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citycon Oyj are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Citycon Oyj may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Immofinanz AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immofinanz AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Immofinanz is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citycon Oyj and Immofinanz

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

The idea behind Citycon Oyj and Immofinanz AG 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.