Correlation Between Vastned Retail and Perusahaan Perseroan
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Perusahaan Perseroan 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 Perusahaan Perseroan 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 Perusahaan Perseroan PT, you can compare the effects of market volatilities on Vastned Retail and Perusahaan Perseroan 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 Perusahaan Perseroan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Perusahaan Perseroan.
Diversification Opportunities for Vastned Retail and Perusahaan Perseroan
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vastned and Perusahaan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Perusahaan Perseroan PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Perseroan 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 Perusahaan Perseroan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Perseroan has no effect on the direction of Vastned Retail i.e., Vastned Retail and Perusahaan Perseroan go up and down completely randomly.
Pair Corralation between Vastned Retail and Perusahaan Perseroan
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the Perusahaan Perseroan. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 4.88 times less risky than Perusahaan Perseroan. The stock trades about -0.03 of its potential returns per unit of risk. The Perusahaan Perseroan PT is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,580 in Perusahaan Perseroan PT on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Perusahaan Perseroan PT or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Perusahaan Perseroan PT
Performance |
| Timeline |
| Vastned Retail NV |
| Perusahaan Perseroan |
Vastned Retail and Perusahaan Perseroan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Perusahaan Perseroan
The main advantage of trading using opposite Vastned Retail and Perusahaan Perseroan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Perusahaan Perseroan 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 Perusahaan Perseroan will offset losses from the drop in Perusahaan Perseroan's long position.| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. SIVERS SEMICONDUCTORS AB |
| Perusahaan Perseroan vs. Superior Plus Corp | Perusahaan Perseroan vs. SIVERS SEMICONDUCTORS AB | Perusahaan Perseroan vs. Norsk Hydro ASA | Perusahaan Perseroan vs. Reliance Steel Aluminum |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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