Correlation Between Vastned Retail and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and XTANT MEDICAL 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Vastned Retail and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and XTANT MEDICAL.
Diversification Opportunities for Vastned Retail and XTANT MEDICAL
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vastned and XTANT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Vastned Retail i.e., Vastned Retail and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Vastned Retail and XTANT MEDICAL
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.18 times more return on investment than XTANT MEDICAL. However, Vastned Retail NV is 5.64 times less risky than XTANT MEDICAL. It trades about -0.02 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about -0.04 per unit of risk. If you would invest 2,168 in Vastned Retail NV on September 29, 2024 and sell it today you would lose (63.00) from holding Vastned Retail NV or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Vastned Retail NV |
| XTANT MEDICAL HLDGS |
Vastned Retail and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and XTANT MEDICAL
The main advantage of trading using opposite Vastned Retail and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Realty Income | Vastned Retail vs. Kimco Realty | Vastned Retail vs. Brixmor Property Group |
| XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Medtronic PLC | XTANT MEDICAL vs. Siemens Healthineers AG | XTANT MEDICAL vs. Edwards Lifesciences |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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