Correlation Between Vastned Retail and BenevolentAI
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and BenevolentAI 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 BenevolentAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and BenevolentAI SA, you can compare the effects of market volatilities on Vastned Retail and BenevolentAI 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 BenevolentAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and BenevolentAI.
Diversification Opportunities for Vastned Retail and BenevolentAI
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vastned and BenevolentAI is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and BenevolentAI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenevolentAI SA 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 NV are associated (or correlated) with BenevolentAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenevolentAI SA has no effect on the direction of Vastned Retail i.e., Vastned Retail and BenevolentAI go up and down completely randomly.
Pair Corralation between Vastned Retail and BenevolentAI
Assuming the 90 days trading horizon Vastned Retail NV is expected to generate 0.24 times more return on investment than BenevolentAI. However, Vastned Retail NV is 4.22 times less risky than BenevolentAI. It trades about -0.05 of its potential returns per unit of risk. BenevolentAI SA is currently generating about -0.16 per unit of risk. If you would invest 2,465 in Vastned Retail NV on August 27, 2024 and sell it today you would lose (15.00) from holding Vastned Retail NV or give up 0.61% 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 NV vs. BenevolentAI SA
Performance |
| Timeline |
| Vastned Retail NV |
| BenevolentAI SA |
Vastned Retail and BenevolentAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and BenevolentAI
The main advantage of trading using opposite Vastned Retail and BenevolentAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, BenevolentAI 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 BenevolentAI will offset losses from the drop in BenevolentAI's long position.The idea behind Vastned Retail NV and BenevolentAI SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BenevolentAI vs. Galapagos NV | BenevolentAI vs. Koninklijke BAM Groep | BenevolentAI vs. Fugro NV | BenevolentAI vs. PostNL NV |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |