Correlation Between Retail Estates and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Retail Estates and MAVEN WIRELESS 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 Estates and MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Retail Estates and MAVEN WIRELESS 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 Estates with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and MAVEN WIRELESS.
Diversification Opportunities for Retail Estates and MAVEN WIRELESS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Retail and MAVEN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and Retail Estates 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 Estates NV are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Retail Estates i.e., Retail Estates and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Retail Estates and MAVEN WIRELESS
Assuming the 90 days horizon Retail Estates NV is expected to generate 0.45 times more return on investment than MAVEN WIRELESS. However, Retail Estates NV is 2.23 times less risky than MAVEN WIRELESS. It trades about -0.11 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.14 per unit of risk. If you would invest 6,360 in Retail Estates NV on August 29, 2024 and sell it today you would lose (490.00) from holding Retail Estates NV or give up 7.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Retail Estates NV vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Retail Estates NV |
| MAVEN WIRELESS SWEDEN |
Retail Estates and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and MAVEN WIRELESS
The main advantage of trading using opposite Retail Estates and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Retail Estates vs. DEVRY EDUCATION GRP | Retail Estates vs. MAGIC SOFTWARE ENTR | Retail Estates vs. EMBARK EDUCATION LTD | Retail Estates vs. GALENA MINING LTD |
| MAVEN WIRELESS vs. Verizon Communications | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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