Correlation Between Vastned Retail and ZIJIN MINH
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and ZIJIN MINH 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 ZIJIN MINH 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 ZIJIN MINH UNSPADR20, you can compare the effects of market volatilities on Vastned Retail and ZIJIN MINH 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 ZIJIN MINH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and ZIJIN MINH.
Diversification Opportunities for Vastned Retail and ZIJIN MINH
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and ZIJIN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and ZIJIN MINH UNSPADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIJIN MINH UNSPADR20 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 ZIJIN MINH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIJIN MINH UNSPADR20 has no effect on the direction of Vastned Retail i.e., Vastned Retail and ZIJIN MINH go up and down completely randomly.
Pair Corralation between Vastned Retail and ZIJIN MINH
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.34 times more return on investment than ZIJIN MINH. However, Vastned Retail NV is 2.91 times less risky than ZIJIN MINH. It trades about 0.09 of its potential returns per unit of risk. ZIJIN MINH UNSPADR20 is currently generating about 0.03 per unit of risk. If you would invest 2,125 in Vastned Retail NV on September 3, 2024 and sell it today you would earn a total of 315.00 from holding Vastned Retail NV or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.34% |
| Values | Daily Returns |
Vastned Retail NV vs. ZIJIN MINH UNSPADR20
Performance |
| Timeline |
| Vastned Retail NV |
| ZIJIN MINH UNSPADR20 |
Vastned Retail and ZIJIN MINH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and ZIJIN MINH
The main advantage of trading using opposite Vastned Retail and ZIJIN MINH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, ZIJIN MINH 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 ZIJIN MINH will offset losses from the drop in ZIJIN MINH'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 |
| ZIJIN MINH vs. FEMALE HEALTH | ZIJIN MINH vs. ON SEMICONDUCTOR | ZIJIN MINH vs. Vastned Retail NV | ZIJIN MINH vs. RETAIL FOOD GROUP |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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