Correlation Between VGP NV and Immolease Trust
Can any of the company-specific risk be diversified away by investing in both VGP NV and Immolease Trust 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 Immolease Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGP NV and Immolease Trust NV, you can compare the effects of market volatilities on VGP NV and Immolease Trust 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 Immolease Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGP NV and Immolease Trust.
Diversification Opportunities for VGP NV and Immolease Trust
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VGP and Immolease is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding VGP NV and Immolease Trust NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immolease Trust NV 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 Immolease Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immolease Trust NV has no effect on the direction of VGP NV i.e., VGP NV and Immolease Trust go up and down completely randomly.
Pair Corralation between VGP NV and Immolease Trust
Assuming the 90 days trading horizon VGP NV is expected to generate 0.66 times more return on investment than Immolease Trust. However, VGP NV is 1.52 times less risky than Immolease Trust. It trades about 0.02 of its potential returns per unit of risk. Immolease Trust NV is currently generating about 0.01 per unit of risk. If you would invest 7,405 in VGP NV on August 25, 2024 and sell it today you would earn a total of 525.00 from holding VGP NV or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.18% |
| Values | Daily Returns |
VGP NV vs. Immolease Trust NV
Performance |
| Timeline |
| VGP NV |
| Immolease Trust NV |
VGP NV and Immolease Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGP NV and Immolease Trust
The main advantage of trading using opposite VGP NV and Immolease Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGP NV position performs unexpectedly, Immolease Trust 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 Immolease Trust will offset losses from the drop in Immolease Trust'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 |
| Immolease Trust vs. Immobiliere Distri Land NV | Immolease Trust vs. Immobel | Immolease Trust vs. Accentis |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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