Correlation Between Vastned Retail and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Vastned Retail and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Samsung Electronics.
Diversification Opportunities for Vastned Retail and Samsung Electronics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vastned and Samsung is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Vastned Retail i.e., Vastned Retail and Samsung Electronics go up and down completely randomly.
Pair Corralation between Vastned Retail and Samsung Electronics
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.68 times more return on investment than Samsung Electronics. However, Vastned Retail NV is 1.46 times less risky than Samsung Electronics. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 1,809 in Vastned Retail NV on August 24, 2024 and sell it today you would earn a total of 571.00 from holding Vastned Retail NV or generate 31.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Samsung Electronics Co
Performance |
| Timeline |
| Vastned Retail NV |
| Samsung Electronics |
Vastned Retail and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Samsung Electronics
The main advantage of trading using opposite Vastned Retail and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings |
| Samsung Electronics vs. TRADEDOUBLER AB SK | Samsung Electronics vs. ScanSource | Samsung Electronics vs. Auto Trader Group | Samsung Electronics vs. Vastned Retail NV |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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