Correlation Between Vicinity Centres and Cromwell Property

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

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

Diversification Opportunities for Vicinity Centres and Cromwell Property

-0.46

Correlation Coefficient

Vicinity Centres  Cromwell Property

Very good diversification

The 3 months correlation between Vicinity and Cromwell is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vicinity Centres and Cromwell Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cromwell Property and Vicinity Centres 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 Vicinity Centres are associated (or correlated) with Cromwell Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cromwell Property has no effect on the direction of Vicinity Centres i.e., Vicinity Centres and Cromwell Property go up and down completely randomly.

Pair Corralation between Vicinity Centres and Cromwell Property

Assuming the 90 days trading horizon Vicinity Centres is expected to generate 0.44 times more return on investment than Cromwell Property. However, Vicinity Centres is 2.25 times less risky than Cromwell Property. It trades about 0.16 of its potential returns per unit of risk. Cromwell Property Group is currently generating about 0.03 per unit of risk. If you would invest  226.00  in Vicinity Centres on April 20, 2025 and sell it today you would earn a total of  26.00  from holding Vicinity Centres or generate 11.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Vicinity Centres  vs.  Cromwell Property Group

Vicinity Centres

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vicinity Centres are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vicinity Centres may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cromwell Property

Risk-Adjusted Performance

Weak

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

Pair Trading with Vicinity Centres and Cromwell Property

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

The idea behind Vicinity Centres and Cromwell Property Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.