Correlation Between EVS Broadcast and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast 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 EVS Broadcast and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Vastned Retail Belgium, you can compare the effects of market volatilities on EVS Broadcast 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 EVS Broadcast with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Vastned Retail.
Diversification Opportunities for EVS Broadcast and Vastned Retail
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EVS and Vastned is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Vastned Retail Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail Belgium and EVS Broadcast 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 EVS Broadcast Equipment 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 Belgium has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Vastned Retail go up and down completely randomly.
Pair Corralation between EVS Broadcast and Vastned Retail
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.97 times more return on investment than Vastned Retail. However, EVS Broadcast Equipment is 1.03 times less risky than Vastned Retail. It trades about -0.01 of its potential returns per unit of risk. Vastned Retail Belgium is currently generating about -0.04 per unit of risk. If you would invest 2,981 in EVS Broadcast Equipment on August 29, 2024 and sell it today you would lose (36.00) from holding EVS Broadcast Equipment or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Vastned Retail Belgium
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Vastned Retail Belgium |
EVS Broadcast and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Vastned Retail
The main advantage of trading using opposite EVS Broadcast and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast 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.| EVS Broadcast vs. Vastned Retail Belgium | EVS Broadcast vs. Immolease Trust NV | EVS Broadcast vs. Keyware Technologies NV | EVS Broadcast vs. Retail Estates |
| Vastned Retail vs. Home Invest Belgium | Vastned Retail vs. Wereldhav B Sicafi | Vastned Retail vs. Retail Estates | Vastned Retail vs. Exmar 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |