Correlation Between Vastned Retail and Retail Estates
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Retail Estates 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 Vastned Retail and Retail Estates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail Belgium and Retail Estates , you can compare the effects of market volatilities on Vastned Retail and Retail Estates 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 Vastned Retail with a short position of Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Retail Estates.
Diversification Opportunities for Vastned Retail and Retail Estates
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vastned and Retail is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail Belgium and Retail Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates and Vastned Retail 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 Vastned Retail Belgium are associated (or correlated) with Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates has no effect on the direction of Vastned Retail i.e., Vastned Retail and Retail Estates go up and down completely randomly.
Pair Corralation between Vastned Retail and Retail Estates
Assuming the 90 days trading horizon Vastned Retail Belgium is expected to generate 1.14 times more return on investment than Retail Estates. However, Vastned Retail is 1.14 times more volatile than Retail Estates . It trades about -0.04 of its potential returns per unit of risk. Retail Estates is currently generating about -0.27 per unit of risk. If you would invest 2,988 in Vastned Retail Belgium on August 25, 2024 and sell it today you would lose (38.00) from holding Vastned Retail Belgium or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail Belgium vs. Retail Estates
Performance |
| Timeline |
| Vastned Retail Belgium |
| Retail Estates |
Vastned Retail and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Retail Estates
The main advantage of trading using opposite Vastned Retail and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| Vastned Retail vs. Wereldhav B Sicafi | Vastned Retail vs. QRF SCA | Vastned Retail vs. Retail Estates | Vastned Retail vs. Home Invest Belgium |
| Retail Estates vs. Cofinimmo SA | Retail Estates vs. Warehouses de Pauw | Retail Estates vs. Montea CVA | Retail Estates vs. Aedifica |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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