Correlation Between Greenyard and Immobel
Can any of the company-specific risk be diversified away by investing in both Greenyard and Immobel 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 Greenyard and Immobel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenyard NV and Immobel, you can compare the effects of market volatilities on Greenyard and Immobel 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 Greenyard with a short position of Immobel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenyard and Immobel.
Diversification Opportunities for Greenyard and Immobel
Poor diversification
The 3 months correlation between Greenyard and Immobel is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Greenyard NV and Immobel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobel and Greenyard 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 Greenyard NV are associated (or correlated) with Immobel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobel has no effect on the direction of Greenyard i.e., Greenyard and Immobel go up and down completely randomly.
Pair Corralation between Greenyard and Immobel
Assuming the 90 days trading horizon Greenyard NV is expected to generate 0.84 times more return on investment than Immobel. However, Greenyard NV is 1.19 times less risky than Immobel. It trades about 0.02 of its potential returns per unit of risk. Immobel is currently generating about -0.07 per unit of risk. If you would invest 519.00 in Greenyard NV on August 27, 2024 and sell it today you would earn a total of 21.00 from holding Greenyard NV or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenyard NV vs. Immobel
Performance |
| Timeline |
| Greenyard NV |
| Immobel |
Greenyard and Immobel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenyard and Immobel
The main advantage of trading using opposite Greenyard and Immobel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenyard position performs unexpectedly, Immobel 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 Immobel will offset losses from the drop in Immobel's long position.| Greenyard vs. Exmar NV | Greenyard vs. Melexis NV | Greenyard vs. Biocartis Group NV | Greenyard vs. Kinepolis Group NV |
| Immobel vs. Home Invest Belgium | Immobel vs. Wereldhav B Sicafi | Immobel vs. Retail Estates | Immobel 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |