Correlation Between Immobiliere Distri and Banimmo SA
Can any of the company-specific risk be diversified away by investing in both Immobiliere Distri and Banimmo SA 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 Immobiliere Distri and Banimmo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobiliere Distri Land NV and Banimmo SA, you can compare the effects of market volatilities on Immobiliere Distri and Banimmo SA 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 Immobiliere Distri with a short position of Banimmo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobiliere Distri and Banimmo SA.
Diversification Opportunities for Immobiliere Distri and Banimmo SA
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Immobiliere and Banimmo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Immobiliere Distri Land NV and Banimmo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banimmo SA and Immobiliere Distri 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 Immobiliere Distri Land NV are associated (or correlated) with Banimmo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banimmo SA has no effect on the direction of Immobiliere Distri i.e., Immobiliere Distri and Banimmo SA go up and down completely randomly.
Pair Corralation between Immobiliere Distri and Banimmo SA
Assuming the 90 days trading horizon Immobiliere Distri Land NV is expected to under-perform the Banimmo SA. In addition to that, Immobiliere Distri is 1.65 times more volatile than Banimmo SA. It trades about -0.21 of its total potential returns per unit of risk. Banimmo SA is currently generating about -0.15 per unit of volatility. If you would invest 300.00 in Banimmo SA on September 5, 2024 and sell it today you would lose (8.00) from holding Banimmo SA or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Immobiliere Distri Land NV vs. Banimmo SA
Performance |
| Timeline |
| Immobiliere Distri Land |
| Banimmo SA |
Immobiliere Distri and Banimmo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobiliere Distri and Banimmo SA
The main advantage of trading using opposite Immobiliere Distri and Banimmo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobiliere Distri position performs unexpectedly, Banimmo SA 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 Banimmo SA will offset losses from the drop in Banimmo SA's long position.The idea behind Immobiliere Distri Land NV and Banimmo SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Banimmo SA vs. Aedifica | Banimmo SA vs. Cofinimmo SA | Banimmo SA vs. Warehouses de Pauw | Banimmo SA vs. VGP NV |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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