Correlation Between Ageas SANV and Care Property
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Care 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 Ageas SANV and Care Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Care Property Invest, you can compare the effects of market volatilities on Ageas SANV and Care 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 Ageas SANV with a short position of Care Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Care Property.
Diversification Opportunities for Ageas SANV and Care Property
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and Care is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Care Property Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Care Property Invest and Ageas SANV 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 ageas SANV are associated (or correlated) with Care Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Care Property Invest has no effect on the direction of Ageas SANV i.e., Ageas SANV and Care Property go up and down completely randomly.
Pair Corralation between Ageas SANV and Care Property
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.46 times more return on investment than Care Property. However, ageas SANV is 2.16 times less risky than Care Property. It trades about 0.23 of its potential returns per unit of risk. Care Property Invest is currently generating about -0.01 per unit of risk. If you would invest 4,736 in ageas SANV on November 7, 2024 and sell it today you would earn a total of 204.00 from holding ageas SANV or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Care Property Invest
Performance |
| Timeline |
| ageas SANV |
| Care Property Invest |
Ageas SANV and Care Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Care Property
The main advantage of trading using opposite Ageas SANV and Care Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Care 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 Care Property will offset losses from the drop in Care Property's long position.| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
| Care Property vs. Aedifica | Care Property vs. Cofinimmo SA | Care Property vs. Xior Student Housing | Care Property vs. VGP NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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