Correlation Between DATANG INTL and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both DATANG INTL 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 DATANG INTL and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Vastned Retail NV, you can compare the effects of market volatilities on DATANG INTL 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 DATANG INTL with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Vastned Retail.
Diversification Opportunities for DATANG INTL and Vastned Retail
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DATANG and Vastned is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW 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 DATANG INTL 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 DATANG INTL POW 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 DATANG INTL i.e., DATANG INTL and Vastned Retail go up and down completely randomly.
Pair Corralation between DATANG INTL and Vastned Retail
Assuming the 90 days trading horizon DATANG INTL POW is expected to generate 2.95 times more return on investment than Vastned Retail. However, DATANG INTL is 2.95 times more volatile than Vastned Retail NV. It trades about 0.05 of its potential returns per unit of risk. Vastned Retail NV is currently generating about 0.05 per unit of risk. If you would invest 10.00 in DATANG INTL POW on September 12, 2024 and sell it today you would earn a total of 7.00 from holding DATANG INTL POW or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. Vastned Retail NV
Performance |
| Timeline |
| DATANG INTL POW |
| Vastned Retail NV |
DATANG INTL and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Vastned Retail
The main advantage of trading using opposite DATANG INTL and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL 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.| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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