Correlation Between WFD Unibail and Scentre
Can any of the company-specific risk be diversified away by investing in both WFD Unibail and Scentre 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 WFD Unibail and Scentre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WFD Unibail Rodamco and Scentre Group, you can compare the effects of market volatilities on WFD Unibail and Scentre 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 WFD Unibail with a short position of Scentre. Check out your portfolio center. Please also check ongoing floating volatility patterns of WFD Unibail and Scentre.
Diversification Opportunities for WFD Unibail and Scentre
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WFD and Scentre is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding WFD Unibail Rodamco and Scentre Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scentre Group and WFD Unibail 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 WFD Unibail Rodamco are associated (or correlated) with Scentre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scentre Group has no effect on the direction of WFD Unibail i.e., WFD Unibail and Scentre go up and down completely randomly.
Pair Corralation between WFD Unibail and Scentre
Assuming the 90 days horizon WFD Unibail Rodamco is expected to generate 0.85 times more return on investment than Scentre. However, WFD Unibail Rodamco is 1.17 times less risky than Scentre. It trades about 0.14 of its potential returns per unit of risk. Scentre Group is currently generating about -0.24 per unit of risk. If you would invest 7,572 in WFD Unibail Rodamco on October 25, 2024 and sell it today you would earn a total of 218.00 from holding WFD Unibail Rodamco or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
WFD Unibail Rodamco vs. Scentre Group
Performance |
| Timeline |
| WFD Unibail Rodamco |
| Scentre Group |
WFD Unibail and Scentre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WFD Unibail and Scentre
The main advantage of trading using opposite WFD Unibail and Scentre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WFD Unibail position performs unexpectedly, Scentre 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 Scentre will offset losses from the drop in Scentre's long position.| WFD Unibail vs. Klpierre SA | WFD Unibail vs. Vonovia SE | WFD Unibail vs. Link Real Estate | WFD Unibail vs. Segro Plc |
| Scentre vs. Mapletree Commercial Trust | Scentre vs. Retail Opportunity Investments | Scentre vs. Kimco Realty |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |