Correlation Between Immolease Trust and Retail Estates
Can any of the company-specific risk be diversified away by investing in both Immolease Trust and Retail Estates 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 Immolease Trust and Retail Estates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immolease Trust NV and Retail Estates , you can compare the effects of market volatilities on Immolease Trust and Retail Estates 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 Immolease Trust with a short position of Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immolease Trust and Retail Estates.
Diversification Opportunities for Immolease Trust and Retail Estates
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Immolease and Retail is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Immolease Trust NV and Retail Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates and Immolease Trust 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 Immolease Trust NV are associated (or correlated) with Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates has no effect on the direction of Immolease Trust i.e., Immolease Trust and Retail Estates go up and down completely randomly.
Pair Corralation between Immolease Trust and Retail Estates
Assuming the 90 days trading horizon Immolease Trust NV is expected to generate 0.54 times more return on investment than Retail Estates. However, Immolease Trust NV is 1.84 times less risky than Retail Estates. It trades about -0.31 of its potential returns per unit of risk. Retail Estates is currently generating about -0.34 per unit of risk. If you would invest 11,000 in Immolease Trust NV on August 29, 2024 and sell it today you would lose (200.00) from holding Immolease Trust NV or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Immolease Trust NV vs. Retail Estates
Performance |
| Timeline |
| Immolease Trust NV |
| Retail Estates |
Immolease Trust and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immolease Trust and Retail Estates
The main advantage of trading using opposite Immolease Trust and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immolease Trust position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| Immolease Trust vs. Immobel | Immolease Trust vs. Accentis | Immolease Trust vs. Exmar NV | Immolease Trust vs. Iep Invest |
| Retail Estates vs. Cofinimmo SA | Retail Estates vs. Warehouses de Pauw | Retail Estates vs. Montea CVA | Retail Estates vs. Aedifica |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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