Correlation Between RETAIL FOOD and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Vastned Retail NV, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Vastned Retail.
Diversification Opportunities for RETAIL FOOD and Vastned Retail
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between RETAIL and Vastned is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Vastned Retail NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail NV and RETAIL FOOD 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 RETAIL FOOD GROUP 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 NV has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and Vastned Retail go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Vastned Retail
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to generate 2.27 times more return on investment than Vastned Retail. However, RETAIL FOOD is 2.27 times more volatile than Vastned Retail NV. It trades about 0.03 of its potential returns per unit of risk. Vastned Retail NV is currently generating about 0.07 per unit of risk. If you would invest 3.40 in RETAIL FOOD GROUP on August 28, 2024 and sell it today you would earn a total of 0.80 from holding RETAIL FOOD GROUP or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Vastned Retail NV
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Vastned Retail NV |
RETAIL FOOD and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Vastned Retail
The main advantage of trading using opposite RETAIL FOOD and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc |
| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. Origin Agritech |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |