Correlation Between Vastned Retail and Broadwind
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Broadwind 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 Broadwind 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 Broadwind, you can compare the effects of market volatilities on Vastned Retail and Broadwind 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 Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Broadwind.
Diversification Opportunities for Vastned Retail and Broadwind
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vastned and Broadwind is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind 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 Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of Vastned Retail i.e., Vastned Retail and Broadwind go up and down completely randomly.
Pair Corralation between Vastned Retail and Broadwind
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.28 times more return on investment than Broadwind. However, Vastned Retail NV is 3.59 times less risky than Broadwind. It trades about 0.07 of its potential returns per unit of risk. Broadwind is currently generating about -0.03 per unit of risk. If you would invest 1,687 in Vastned Retail NV on September 12, 2024 and sell it today you would earn a total of 558.00 from holding Vastned Retail NV or generate 33.08% 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. Broadwind
Performance |
| Timeline |
| Vastned Retail NV |
| Broadwind |
Vastned Retail and Broadwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Broadwind
The main advantage of trading using opposite Vastned Retail and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Broadwind 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 Broadwind will offset losses from the drop in Broadwind's long position.| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. SIVERS SEMICONDUCTORS AB |
| Broadwind vs. Micron Technology | Broadwind vs. Vastned Retail NV | Broadwind vs. National Retail Properties | Broadwind vs. DXC Technology Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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