Correlation Between Exmar NV and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both Exmar NV 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 Exmar NV and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exmar NV and Vastned Retail Belgium, you can compare the effects of market volatilities on Exmar NV 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 Exmar NV with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exmar NV and Vastned Retail.
Diversification Opportunities for Exmar NV and Vastned Retail
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exmar and Vastned is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Exmar NV 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 Exmar NV 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 Exmar NV 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 Exmar NV i.e., Exmar NV and Vastned Retail go up and down completely randomly.
Pair Corralation between Exmar NV and Vastned Retail
Assuming the 90 days trading horizon Exmar NV is expected to generate 2.05 times more return on investment than Vastned Retail. However, Exmar NV is 2.05 times more volatile than Vastned Retail Belgium. It trades about 0.1 of its potential returns per unit of risk. Vastned Retail Belgium is currently generating about -0.15 per unit of risk. If you would invest 763.00 in Exmar NV on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Exmar NV or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exmar NV vs. Vastned Retail Belgium
Performance |
| Timeline |
| Exmar NV |
| Vastned Retail Belgium |
Exmar NV and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exmar NV and Vastned Retail
The main advantage of trading using opposite Exmar NV and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exmar NV 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.| Exmar NV vs. EVS Broadcast Equipment | Exmar NV vs. NV Bekaert SA | Exmar NV vs. Tessenderlo | Exmar NV vs. Melexis NV |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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