Correlation Between ALLIANZ SE and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both ALLIANZ SE and Vastned Retail 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 ALLIANZ SE and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALLIANZ SE UNSPADR and Vastned Retail NV, you can compare the effects of market volatilities on ALLIANZ SE and Vastned Retail 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 ALLIANZ SE with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALLIANZ SE and Vastned Retail.
Diversification Opportunities for ALLIANZ SE and Vastned Retail
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ALLIANZ and Vastned is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ALLIANZ SE UNSPADR and Vastned Retail NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail NV and ALLIANZ SE 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 ALLIANZ SE UNSPADR are associated (or correlated) with Vastned Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastned Retail NV has no effect on the direction of ALLIANZ SE i.e., ALLIANZ SE and Vastned Retail go up and down completely randomly.
Pair Corralation between ALLIANZ SE and Vastned Retail
Assuming the 90 days trading horizon ALLIANZ SE UNSPADR is expected to under-perform the Vastned Retail. But the stock apears to be less risky and, when comparing its historical volatility, ALLIANZ SE UNSPADR is 1.18 times less risky than Vastned Retail. The stock trades about -0.08 of its potential returns per unit of risk. The Vastned Retail NV is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,440 in Vastned Retail NV on August 30, 2024 and sell it today you would lose (25.00) from holding Vastned Retail NV or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ALLIANZ SE UNSPADR vs. Vastned Retail NV
Performance |
| Timeline |
| ALLIANZ SE UNSPADR |
| Vastned Retail NV |
ALLIANZ SE and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALLIANZ SE and Vastned Retail
The main advantage of trading using opposite ALLIANZ SE and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALLIANZ SE position performs unexpectedly, Vastned Retail 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 Vastned Retail will offset losses from the drop in Vastned Retail's long position.| ALLIANZ SE vs. Vastned Retail NV | ALLIANZ SE vs. CarsalesCom | ALLIANZ SE vs. DEVRY EDUCATION GRP | ALLIANZ SE vs. MARKET VECTR RETAIL |
| Vastned Retail vs. ULTRA CLEAN HLDGS | Vastned Retail vs. Cleanaway Waste Management | Vastned Retail vs. CVW CLEANTECH INC | Vastned Retail vs. Corsair Gaming |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |