Correlation Between Vastned Retail and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on Vastned Retail and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Federal Agricultural.
Diversification Opportunities for Vastned Retail and Federal Agricultural
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vastned and Federal is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Vastned Retail i.e., Vastned Retail and Federal Agricultural go up and down completely randomly.
Pair Corralation between Vastned Retail and Federal Agricultural
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the Federal Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 1.61 times less risky than Federal Agricultural. The stock trades about -0.24 of its potential returns per unit of risk. The Federal Agricultural Mortgage is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 19,464 in Federal Agricultural Mortgage on September 26, 2024 and sell it today you would lose (364.00) from holding Federal Agricultural Mortgage or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| Vastned Retail NV |
| Federal Agricultural |
Vastned Retail and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Federal Agricultural
The main advantage of trading using opposite Vastned Retail and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Realty Income | Vastned Retail vs. Kimco Realty | Vastned Retail vs. Range Resources Corp |
| Federal Agricultural vs. Visa Inc | Federal Agricultural vs. Visa Inc | Federal Agricultural vs. Mastercard | Federal Agricultural vs. Mastercard |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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