Correlation Between Cofinimmo and Xior Student
Can any of the company-specific risk be diversified away by investing in both Cofinimmo and Xior Student 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 Xior Student into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cofinimmo SA and Xior Student Housing, you can compare the effects of market volatilities on Cofinimmo and Xior Student 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 Xior Student. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofinimmo and Xior Student.
Diversification Opportunities for Cofinimmo and Xior Student
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofinimmo and Xior is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cofinimmo SA and Xior Student Housing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xior Student Housing 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 Xior Student. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xior Student Housing has no effect on the direction of Cofinimmo i.e., Cofinimmo and Xior Student go up and down completely randomly.
Pair Corralation between Cofinimmo and Xior Student
Assuming the 90 days trading horizon Cofinimmo SA is expected to under-perform the Xior Student. But the stock apears to be less risky and, when comparing its historical volatility, Cofinimmo SA is 1.2 times less risky than Xior Student. The stock trades about -0.03 of its potential returns per unit of risk. The Xior Student Housing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,855 in Xior Student Housing on August 27, 2024 and sell it today you would earn a total of 205.00 from holding Xior Student Housing or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofinimmo SA vs. Xior Student Housing
Performance |
| Timeline |
| Cofinimmo SA |
| Xior Student Housing |
Cofinimmo and Xior Student Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofinimmo and Xior Student
The main advantage of trading using opposite Cofinimmo and Xior Student positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofinimmo position performs unexpectedly, Xior Student 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 Xior Student will offset losses from the drop in Xior Student's long position.| Cofinimmo vs. Home Invest Belgium | Cofinimmo vs. Wereldhav B Sicafi | Cofinimmo vs. Retail Estates | Cofinimmo vs. Exmar NV |
| Xior Student vs. Aedifica | Xior Student vs. Cofinimmo SA | Xior Student vs. Care Property Invest | Xior Student vs. Warehouses de Pauw |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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