Correlation Between GIMV NV and Cofinimmo
Can any of the company-specific risk be diversified away by investing in both GIMV NV and Cofinimmo 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 GIMV NV and Cofinimmo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GIMV NV and Cofinimmo SA, you can compare the effects of market volatilities on GIMV NV and Cofinimmo 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 GIMV NV with a short position of Cofinimmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIMV NV and Cofinimmo.
Diversification Opportunities for GIMV NV and Cofinimmo
Almost no diversification
The 3 months correlation between GIMV and Cofinimmo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and Cofinimmo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofinimmo SA and GIMV 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 GIMV NV are associated (or correlated) with Cofinimmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofinimmo SA has no effect on the direction of GIMV NV i.e., GIMV NV and Cofinimmo go up and down completely randomly.
Pair Corralation between GIMV NV and Cofinimmo
Assuming the 90 days trading horizon GIMV NV is expected to generate 1.42 times more return on investment than Cofinimmo. However, GIMV NV is 1.42 times more volatile than Cofinimmo SA. It trades about 0.13 of its potential returns per unit of risk. Cofinimmo SA is currently generating about -0.28 per unit of risk. If you would invest 3,900 in GIMV NV on August 27, 2024 and sell it today you would earn a total of 185.00 from holding GIMV NV or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GIMV NV vs. Cofinimmo SA
Performance |
| Timeline |
| GIMV NV |
| Cofinimmo SA |
GIMV NV and Cofinimmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GIMV NV and Cofinimmo
The main advantage of trading using opposite GIMV NV and Cofinimmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GIMV NV position performs unexpectedly, Cofinimmo 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 Cofinimmo will offset losses from the drop in Cofinimmo's long position.| GIMV NV vs. Groep Brussel Lambert | GIMV NV vs. Sofina Socit Anonyme | GIMV NV vs. Ackermans Van Haaren | GIMV NV vs. KBC Ancora |
| Cofinimmo vs. Home Invest Belgium | Cofinimmo vs. Wereldhav B Sicafi | Cofinimmo vs. Retail Estates | Cofinimmo 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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