Correlation Between Retail Estates and Ascencio
Can any of the company-specific risk be diversified away by investing in both Retail Estates and Ascencio 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 Ascencio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates and Ascencio, you can compare the effects of market volatilities on Retail Estates and Ascencio 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 Ascencio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Ascencio.
Diversification Opportunities for Retail Estates and Ascencio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Retail and Ascencio is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates and Ascencio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascencio 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 are associated (or correlated) with Ascencio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascencio has no effect on the direction of Retail Estates i.e., Retail Estates and Ascencio go up and down completely randomly.
Pair Corralation between Retail Estates and Ascencio
Assuming the 90 days trading horizon Retail Estates is expected to under-perform the Ascencio. But the stock apears to be less risky and, when comparing its historical volatility, Retail Estates is 1.14 times less risky than Ascencio. The stock trades about -0.3 of its potential returns per unit of risk. The Ascencio is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 4,715 in Ascencio on August 27, 2024 and sell it today you would lose (170.00) from holding Ascencio or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates vs. Ascencio
Performance |
| Timeline |
| Retail Estates |
| Ascencio |
Retail Estates and Ascencio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Ascencio
The main advantage of trading using opposite Retail Estates and Ascencio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates position performs unexpectedly, Ascencio 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 Ascencio will offset losses from the drop in Ascencio's long position.| Retail Estates vs. Cofinimmo SA | Retail Estates vs. Warehouses de Pauw | Retail Estates vs. Montea CVA | Retail Estates vs. Aedifica |
| Ascencio vs. Hyloris Developmentsen Sa | Ascencio vs. Biocartis Group NV | Ascencio vs. Exmar NV | Ascencio vs. Iep Invest |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |