Correlation Between Vastned Retail and Shurgard Self
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Shurgard Self 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 Shurgard Self 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 Shurgard Self Storage, you can compare the effects of market volatilities on Vastned Retail and Shurgard Self 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 Shurgard Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Shurgard Self.
Diversification Opportunities for Vastned Retail and Shurgard Self
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and Shurgard is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail Belgium and Shurgard Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shurgard Self Storage 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 Shurgard Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shurgard Self Storage has no effect on the direction of Vastned Retail i.e., Vastned Retail and Shurgard Self go up and down completely randomly.
Pair Corralation between Vastned Retail and Shurgard Self
Assuming the 90 days trading horizon Vastned Retail Belgium is expected to generate 0.96 times more return on investment than Shurgard Self. However, Vastned Retail Belgium is 1.04 times less risky than Shurgard Self. It trades about -0.07 of its potential returns per unit of risk. Shurgard Self Storage is currently generating about -0.09 per unit of risk. If you would invest 2,969 in Vastned Retail Belgium on October 26, 2024 and sell it today you would lose (209.00) from holding Vastned Retail Belgium or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail Belgium vs. Shurgard Self Storage
Performance |
| Timeline |
| Vastned Retail Belgium |
| Shurgard Self Storage |
Vastned Retail and Shurgard Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Shurgard Self
The main advantage of trading using opposite Vastned Retail and Shurgard Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Shurgard Self 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 Shurgard Self will offset losses from the drop in Shurgard Self's long position.| Vastned Retail vs. Wereldhav B Sicafi | Vastned Retail vs. QRF SCA | Vastned Retail vs. Retail Estates | Vastned Retail vs. Home Invest Belgium |
| Shurgard Self vs. VGP NV | Shurgard Self vs. Warehouses de Pauw | Shurgard Self vs. Xior Student Housing | Shurgard Self 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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