Correlation Between VGP NV and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both VGP NV and Vastned Retail 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 Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGP NV and Vastned Retail Belgium, you can compare the effects of market volatilities on VGP NV and Vastned Retail 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 Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGP NV and Vastned Retail.
Diversification Opportunities for VGP NV and Vastned Retail
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VGP and Vastned is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding VGP NV and Vastned Retail Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail Belgium 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 Vastned Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastned Retail Belgium has no effect on the direction of VGP NV i.e., VGP NV and Vastned Retail go up and down completely randomly.
Pair Corralation between VGP NV and Vastned Retail
Assuming the 90 days trading horizon VGP NV is expected to under-perform the Vastned Retail. In addition to that, VGP NV is 1.73 times more volatile than Vastned Retail Belgium. It trades about -0.03 of its total potential returns per unit of risk. Vastned Retail Belgium is currently generating about -0.01 per unit of volatility. If you would invest 2,840 in Vastned Retail Belgium on December 1, 2024 and sell it today you would lose (10.00) from holding Vastned Retail Belgium or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VGP NV vs. Vastned Retail Belgium
Performance |
| Timeline |
| VGP NV |
| Vastned Retail Belgium |
VGP NV and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGP NV and Vastned Retail
The main advantage of trading using opposite VGP NV and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGP NV position performs unexpectedly, Vastned Retail 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 Vastned Retail will offset losses from the drop in Vastned Retail'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 |
| Vastned Retail vs. Wereldhav B Sicafi | Vastned Retail vs. QRF SCA | Vastned Retail vs. Retail Estates | Vastned Retail vs. Home Invest Belgium |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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