Correlation Between Vastned Retail and Adidas AG
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Adidas AG 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 Adidas AG 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 adidas AG, you can compare the effects of market volatilities on Vastned Retail and Adidas AG 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 Adidas AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Adidas AG.
Diversification Opportunities for Vastned Retail and Adidas AG
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vastned and Adidas is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and adidas AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on adidas AG 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 Adidas AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of adidas AG has no effect on the direction of Vastned Retail i.e., Vastned Retail and Adidas AG go up and down completely randomly.
Pair Corralation between Vastned Retail and Adidas AG
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.73 times more return on investment than Adidas AG. However, Vastned Retail NV is 1.37 times less risky than Adidas AG. It trades about 0.09 of its potential returns per unit of risk. adidas AG is currently generating about 0.05 per unit of risk. If you would invest 1,728 in Vastned Retail NV on September 5, 2024 and sell it today you would earn a total of 547.00 from holding Vastned Retail NV or generate 31.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Vastned Retail NV vs. adidas AG
Performance |
| Timeline |
| Vastned Retail NV |
| adidas AG |
Vastned Retail and Adidas AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Adidas AG
The main advantage of trading using opposite Vastned Retail and Adidas AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Adidas AG 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 Adidas AG will offset losses from the drop in Adidas AG's long position.| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Link Real Estate | Vastned Retail vs. Kimco Realty | Vastned Retail vs. Range Resources Corp |
| Adidas AG vs. National Health Investors | Adidas AG vs. Ramsay Health Care | Adidas AG vs. Tradeweb Markets | Adidas AG vs. SHIP HEALTHCARE HLDGINC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |