Correlation Between Vastned Retail and AOYAMA TRADING
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING, you can compare the effects of market volatilities on Vastned Retail and AOYAMA TRADING 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 AOYAMA TRADING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and AOYAMA TRADING.
Diversification Opportunities for Vastned Retail and AOYAMA TRADING
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vastned and AOYAMA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and AOYAMA TRADING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOYAMA TRADING 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 AOYAMA TRADING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOYAMA TRADING has no effect on the direction of Vastned Retail i.e., Vastned Retail and AOYAMA TRADING go up and down completely randomly.
Pair Corralation between Vastned Retail and AOYAMA TRADING
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the AOYAMA TRADING. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 8.38 times less risky than AOYAMA TRADING. The stock trades about -0.12 of its potential returns per unit of risk. The AOYAMA TRADING is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 780.00 in AOYAMA TRADING on August 28, 2024 and sell it today you would earn a total of 620.00 from holding AOYAMA TRADING or generate 79.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. AOYAMA TRADING
Performance |
| Timeline |
| Vastned Retail NV |
| AOYAMA TRADING |
Vastned Retail and AOYAMA TRADING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and AOYAMA TRADING
The main advantage of trading using opposite Vastned Retail and AOYAMA TRADING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, AOYAMA TRADING 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 AOYAMA TRADING will offset losses from the drop in AOYAMA TRADING's long position.| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. Origin Agritech |
| AOYAMA TRADING vs. Magnachip Semiconductor | AOYAMA TRADING vs. Grupo Carso SAB | AOYAMA TRADING vs. SIEM OFFSHORE NEW | AOYAMA TRADING vs. ELMOS SEMICONDUCTOR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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