Correlation Between Vastned Retail and PPHE HOTEL
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and PPHE HOTEL 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 PPHE HOTEL 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 PPHE HOTEL GROUP, you can compare the effects of market volatilities on Vastned Retail and PPHE HOTEL 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 PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and PPHE HOTEL.
Diversification Opportunities for Vastned Retail and PPHE HOTEL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vastned and PPHE is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP 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 PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of Vastned Retail i.e., Vastned Retail and PPHE HOTEL go up and down completely randomly.
Pair Corralation between Vastned Retail and PPHE HOTEL
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.29 times more return on investment than PPHE HOTEL. However, Vastned Retail NV is 3.39 times less risky than PPHE HOTEL. It trades about 1.06 of its potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about -0.11 per unit of risk. If you would invest 2,070 in Vastned Retail NV on October 20, 2024 and sell it today you would earn a total of 90.00 from holding Vastned Retail NV or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Vastned Retail NV vs. PPHE HOTEL GROUP
Performance |
| Timeline |
| Vastned Retail NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PPHE HOTEL GROUP |
Vastned Retail and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and PPHE HOTEL
The main advantage of trading using opposite Vastned Retail and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, PPHE HOTEL 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 PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| Vastned Retail vs. MOLSON RS BEVERAGE | Vastned Retail vs. United Natural Foods | Vastned Retail vs. Lery Seafood Group | Vastned Retail vs. LIFEWAY FOODS |
| PPHE HOTEL vs. PLAYWAY SA ZY 10 | PPHE HOTEL vs. USWE SPORTS AB | PPHE HOTEL vs. Alfa Financial Software | PPHE HOTEL vs. ePlay Digital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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