Correlation Between CSHG Real and Vinci Shopping
Can any of the company-specific risk be diversified away by investing in both CSHG Real and Vinci Shopping 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 CSHG Real and Vinci Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSHG Real Estate and Vinci Shopping Centers, you can compare the effects of market volatilities on CSHG Real and Vinci Shopping 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 CSHG Real with a short position of Vinci Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSHG Real and Vinci Shopping.
Diversification Opportunities for CSHG Real and Vinci Shopping
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSHG and Vinci is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CSHG Real Estate and Vinci Shopping Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Shopping Centers and CSHG Real 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 CSHG Real Estate are associated (or correlated) with Vinci Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Shopping Centers has no effect on the direction of CSHG Real i.e., CSHG Real and Vinci Shopping go up and down completely randomly.
Pair Corralation between CSHG Real and Vinci Shopping
Assuming the 90 days trading horizon CSHG Real Estate is expected to generate 0.86 times more return on investment than Vinci Shopping. However, CSHG Real Estate is 1.17 times less risky than Vinci Shopping. It trades about -0.18 of its potential returns per unit of risk. Vinci Shopping Centers is currently generating about -0.27 per unit of risk. If you would invest 10,203 in CSHG Real Estate on September 12, 2024 and sell it today you would lose (728.00) from holding CSHG Real Estate or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSHG Real Estate vs. Vinci Shopping Centers
Performance |
| Timeline |
| CSHG Real Estate |
| Vinci Shopping Centers |
CSHG Real and Vinci Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSHG Real and Vinci Shopping
The main advantage of trading using opposite CSHG Real and Vinci Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSHG Real position performs unexpectedly, Vinci Shopping 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 Vinci Shopping will offset losses from the drop in Vinci Shopping's long position.| CSHG Real vs. CSHG Recebiveis Imobiliarios | CSHG Real vs. CSHG Imobiliario Fof | CSHG Real vs. CSHG Renda Urbana | CSHG Real vs. FDO INV IMOB |
| Vinci Shopping vs. Vinci Imoveis Urbanos | Vinci Shopping vs. Vinci Instrumentos Financeiros | Vinci Shopping vs. FDO INV IMOB | Vinci Shopping vs. SUPREMO FUNDO DE |
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.
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