Correlation Between Cofinimmo and Wereldhav
Can any of the company-specific risk be diversified away by investing in both Cofinimmo and Wereldhav 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 Cofinimmo and Wereldhav into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cofinimmo SA and Wereldhav B Sicafi, you can compare the effects of market volatilities on Cofinimmo and Wereldhav 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 Cofinimmo with a short position of Wereldhav. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofinimmo and Wereldhav.
Diversification Opportunities for Cofinimmo and Wereldhav
Average diversification
The 3 months correlation between Cofinimmo and Wereldhav is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cofinimmo SA and Wereldhav B Sicafi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wereldhav B Sicafi and Cofinimmo 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 Cofinimmo SA are associated (or correlated) with Wereldhav. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wereldhav B Sicafi has no effect on the direction of Cofinimmo i.e., Cofinimmo and Wereldhav go up and down completely randomly.
Pair Corralation between Cofinimmo and Wereldhav
Assuming the 90 days trading horizon Cofinimmo SA is expected to under-perform the Wereldhav. In addition to that, Cofinimmo is 1.08 times more volatile than Wereldhav B Sicafi. It trades about -0.02 of its total potential returns per unit of risk. Wereldhav B Sicafi is currently generating about 0.02 per unit of volatility. If you would invest 4,718 in Wereldhav B Sicafi on November 27, 2024 and sell it today you would earn a total of 582.00 from holding Wereldhav B Sicafi or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofinimmo SA vs. Wereldhav B Sicafi
Performance |
| Timeline |
| Cofinimmo SA |
| Wereldhav B Sicafi |
Cofinimmo and Wereldhav Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofinimmo and Wereldhav
The main advantage of trading using opposite Cofinimmo and Wereldhav positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofinimmo position performs unexpectedly, Wereldhav 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 Wereldhav will offset losses from the drop in Wereldhav's long position.| Cofinimmo vs. Aedifica | Cofinimmo vs. Warehouses de Pauw | Cofinimmo vs. Groep Brussel Lambert | Cofinimmo vs. Ackermans Van Haaren |
| Wereldhav vs. Cofinimmo SA | Wereldhav vs. Retail Estates | Wereldhav vs. Warehouses de Pauw | Wereldhav vs. Montea CVA |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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