Correlation Between Vastned Retail and Reinet Investments
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Reinet Investments 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 Reinet Investments 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 Reinet Investments SCA, you can compare the effects of market volatilities on Vastned Retail and Reinet Investments 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 Reinet Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Reinet Investments.
Diversification Opportunities for Vastned Retail and Reinet Investments
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and Reinet is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Reinet Investments SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinet Investments SCA 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 Reinet Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinet Investments SCA has no effect on the direction of Vastned Retail i.e., Vastned Retail and Reinet Investments go up and down completely randomly.
Pair Corralation between Vastned Retail and Reinet Investments
Assuming the 90 days trading horizon Vastned Retail NV is expected to generate 0.31 times more return on investment than Reinet Investments. However, Vastned Retail NV is 3.27 times less risky than Reinet Investments. It trades about 0.04 of its potential returns per unit of risk. Reinet Investments SCA is currently generating about -0.01 per unit of risk. If you would invest 2,415 in Vastned Retail NV on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Vastned Retail NV or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Vastned Retail NV vs. Reinet Investments SCA
Performance |
| Timeline |
| Vastned Retail NV |
| Reinet Investments SCA |
Vastned Retail and Reinet Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Reinet Investments
The main advantage of trading using opposite Vastned Retail and Reinet Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Reinet Investments 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 Reinet Investments will offset losses from the drop in Reinet Investments' long position.| Vastned Retail vs. Wereldhave NV | Vastned Retail vs. Eurocommercial Properties NV | Vastned Retail vs. NSI NV | Vastned Retail vs. Sligro Food Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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