Correlation Between Vastned Retail and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on Vastned Retail and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and FUYO GENERAL.
Diversification Opportunities for Vastned Retail and FUYO GENERAL
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vastned and FUYO is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Vastned Retail i.e., Vastned Retail and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Vastned Retail and FUYO GENERAL
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the FUYO GENERAL. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 1.69 times less risky than FUYO GENERAL. The stock trades about -0.01 of its potential returns per unit of risk. The FUYO GENERAL LEASE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,750 in FUYO GENERAL LEASE on August 28, 2024 and sell it today you would earn a total of 150.00 from holding FUYO GENERAL LEASE or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Vastned Retail NV |
| FUYO GENERAL LEASE |
Vastned Retail and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and FUYO GENERAL
The main advantage of trading using opposite Vastned Retail and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. Origin Agritech |
| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL vs. Origin Agritech | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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