Correlation Between Vastned Retail and Suzano SA
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Suzano SA 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 Suzano SA 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 Suzano SA, you can compare the effects of market volatilities on Vastned Retail and Suzano SA 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 Suzano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Suzano SA.
Diversification Opportunities for Vastned Retail and Suzano SA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and Suzano is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Suzano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzano SA 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 Suzano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzano SA has no effect on the direction of Vastned Retail i.e., Vastned Retail and Suzano SA go up and down completely randomly.
Pair Corralation between Vastned Retail and Suzano SA
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the Suzano SA. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 3.05 times less risky than Suzano SA. The stock trades about -0.03 of its potential returns per unit of risk. The Suzano SA is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 913.00 in Suzano SA on September 12, 2024 and sell it today you would earn a total of 117.00 from holding Suzano SA or generate 12.81% 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. Suzano SA
Performance |
| Timeline |
| Vastned Retail NV |
| Suzano SA |
Vastned Retail and Suzano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Suzano SA
The main advantage of trading using opposite Vastned Retail and Suzano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Suzano SA 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 Suzano SA will offset losses from the drop in Suzano SA'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 |
| Suzano SA vs. Stora Enso Oyj | Suzano SA vs. Nine Dragons Paper | Suzano SA vs. Superior Plus Corp | Suzano SA vs. Origin Agritech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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