Correlation Between VGP NV and Care Property
Can any of the company-specific risk be diversified away by investing in both VGP NV and Care Property 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 VGP NV and Care Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGP NV and Care Property Invest, you can compare the effects of market volatilities on VGP NV and Care Property 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 VGP NV with a short position of Care Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGP NV and Care Property.
Diversification Opportunities for VGP NV and Care Property
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VGP and Care is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding VGP NV and Care Property Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Care Property Invest and VGP NV 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 VGP NV are associated (or correlated) with Care Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Care Property Invest has no effect on the direction of VGP NV i.e., VGP NV and Care Property go up and down completely randomly.
Pair Corralation between VGP NV and Care Property
Assuming the 90 days trading horizon VGP NV is expected to generate 1.15 times more return on investment than Care Property. However, VGP NV is 1.15 times more volatile than Care Property Invest. It trades about 0.0 of its potential returns per unit of risk. Care Property Invest is currently generating about -0.01 per unit of risk. If you would invest 8,903 in VGP NV on August 27, 2024 and sell it today you would lose (973.00) from holding VGP NV or give up 10.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VGP NV vs. Care Property Invest
Performance |
| Timeline |
| VGP NV |
| Care Property Invest |
VGP NV and Care Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGP NV and Care Property
The main advantage of trading using opposite VGP NV and Care Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGP NV position performs unexpectedly, Care Property 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 Care Property will offset losses from the drop in Care Property's long position.| VGP NV vs. Warehouses de Pauw | VGP NV vs. Sofina Socit Anonyme | VGP NV vs. Aedifica | VGP NV vs. Xior Student Housing |
| Care Property vs. Home Invest Belgium | Care Property vs. Wereldhav B Sicafi | Care Property vs. Retail Estates | Care Property vs. Exmar 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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