Correlation Between Vastned Retail and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on Vastned Retail and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Compagnie Plastic.
Diversification Opportunities for Vastned Retail and Compagnie Plastic
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and Compagnie is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Vastned Retail i.e., Vastned Retail and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Vastned Retail and Compagnie Plastic
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.33 times more return on investment than Compagnie Plastic. However, Vastned Retail NV is 3.02 times less risky than Compagnie Plastic. It trades about 0.04 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.06 per unit of risk. If you would invest 2,425 in Vastned Retail NV on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Vastned Retail NV or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Vastned Retail NV |
| Compagnie Plastic Omnium |
Vastned Retail and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Compagnie Plastic
The main advantage of trading using opposite Vastned Retail and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| Vastned Retail vs. NXP Semiconductors NV | Vastned Retail vs. Elmos Semiconductor SE | Vastned Retail vs. PLAYTIKA HOLDING DL 01 | Vastned Retail vs. COLUMBIA SPORTSWEAR |
| Compagnie Plastic vs. Dno ASA | Compagnie Plastic vs. PT Astra International | Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |