Correlation Between NIPPON PROLOGIS and Varta AG
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By analyzing existing cross correlation between NIPPON PROLOGIS REIT and Varta AG, you can compare the effects of market volatilities on NIPPON PROLOGIS and Varta AG 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 NIPPON PROLOGIS with a short position of Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIPPON PROLOGIS and Varta AG.
Diversification Opportunities for NIPPON PROLOGIS and Varta AG
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NIPPON and Varta is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NIPPON PROLOGIS REIT and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta AG and NIPPON PROLOGIS 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 NIPPON PROLOGIS REIT are associated (or correlated) with Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of NIPPON PROLOGIS i.e., NIPPON PROLOGIS and Varta AG go up and down completely randomly.
Pair Corralation between NIPPON PROLOGIS and Varta AG
Assuming the 90 days trading horizon NIPPON PROLOGIS REIT is expected to generate 0.17 times more return on investment than Varta AG. However, NIPPON PROLOGIS REIT is 5.74 times less risky than Varta AG. It trades about -0.06 of its potential returns per unit of risk. Varta AG is currently generating about -0.02 per unit of risk. If you would invest 226,000 in NIPPON PROLOGIS REIT on September 4, 2024 and sell it today you would lose (83,000) from holding NIPPON PROLOGIS REIT or give up 36.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NIPPON PROLOGIS REIT vs. Varta AG
Performance |
| Timeline |
| NIPPON PROLOGIS REIT |
| Varta AG |
NIPPON PROLOGIS and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIPPON PROLOGIS and Varta AG
The main advantage of trading using opposite NIPPON PROLOGIS and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIPPON PROLOGIS position performs unexpectedly, Varta AG 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 Varta AG will offset losses from the drop in Varta AG's long position.| NIPPON PROLOGIS vs. SEGRO Plc | NIPPON PROLOGIS vs. Yara International ASA | NIPPON PROLOGIS vs. EastGroup Properties | NIPPON PROLOGIS vs. Ascendas Real Estate |
| Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. Mitie Group PLC | Varta AG vs. LODESTAR MIN |
Check out your portfolio center.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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