Correlation Between Growthpoint Properties and Prosus NV
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and Prosus NV 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 Growthpoint Properties and Prosus NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and Prosus NV, you can compare the effects of market volatilities on Growthpoint Properties and Prosus NV 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 Growthpoint Properties with a short position of Prosus NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Prosus NV.
Diversification Opportunities for Growthpoint Properties and Prosus NV
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growthpoint and Prosus is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Prosus NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosus NV and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with Prosus NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosus NV has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Prosus NV go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Prosus NV
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 1.12 times more return on investment than Prosus NV. However, Growthpoint Properties is 1.12 times more volatile than Prosus NV. It trades about -0.02 of its potential returns per unit of risk. Prosus NV is currently generating about -0.16 per unit of risk. If you would invest 131,400 in Growthpoint Properties on August 31, 2024 and sell it today you would lose (1,000.00) from holding Growthpoint Properties or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Growthpoint Properties vs. Prosus NV
Performance |
| Timeline |
| Growthpoint Properties |
| Prosus NV |
Growthpoint Properties and Prosus NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Prosus NV
The main advantage of trading using opposite Growthpoint Properties and Prosus NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Prosus NV 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 Prosus NV will offset losses from the drop in Prosus NV's long position.| Growthpoint Properties vs. Deneb Investments | Growthpoint Properties vs. Standard Bank Group | Growthpoint Properties vs. HomeChoice Investments | Growthpoint Properties vs. ABSA Bank Limited |
| Prosus NV vs. Naspers Limited | Prosus NV vs. Centaur Bci Balanced | Prosus NV vs. Sabvest Capital | Prosus NV vs. AfricaRhodium ETF |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |