Correlation Between Retail Estates and Etex SA
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By analyzing existing cross correlation between Retail Estates and Etex SA, you can compare the effects of market volatilities on Retail Estates and Etex SA 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 Etex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Etex SA.
Diversification Opportunities for Retail Estates and Etex SA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Retail and Etex is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates and Etex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etex SA 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 Etex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etex SA has no effect on the direction of Retail Estates i.e., Retail Estates and Etex SA go up and down completely randomly.
Pair Corralation between Retail Estates and Etex SA
Assuming the 90 days trading horizon Retail Estates is expected to under-perform the Etex SA. But the stock apears to be less risky and, when comparing its historical volatility, Retail Estates is 1.97 times less risky than Etex SA. The stock trades about -0.27 of its potential returns per unit of risk. The Etex SA is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,520 in Etex SA on August 30, 2024 and sell it today you would lose (20.00) from holding Etex SA or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 26.09% |
| Values | Daily Returns |
Retail Estates vs. Etex SA
Performance |
| Timeline |
| Retail Estates |
| Etex SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Retail Estates and Etex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Etex SA
The main advantage of trading using opposite Retail Estates and Etex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates position performs unexpectedly, Etex SA 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 Etex SA will offset losses from the drop in Etex SA's long position.| Retail Estates vs. Cofinimmo SA | Retail Estates vs. Montea CVA | Retail Estates vs. Aedifica | Retail Estates vs. Exmar NV |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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