Correlation Between Vornado Realty and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Vornado Realty and Gecina SA 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 Vornado Realty and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vornado Realty Trust and Gecina SA, you can compare the effects of market volatilities on Vornado Realty and Gecina SA 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 Vornado Realty with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vornado Realty and Gecina SA.
Diversification Opportunities for Vornado Realty and Gecina SA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vornado and Gecina is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vornado Realty Trust and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Vornado Realty 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 Vornado Realty Trust are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Vornado Realty i.e., Vornado Realty and Gecina SA go up and down completely randomly.
Pair Corralation between Vornado Realty and Gecina SA
Assuming the 90 days horizon Vornado Realty Trust is expected to generate 2.3 times more return on investment than Gecina SA. However, Vornado Realty is 2.3 times more volatile than Gecina SA. It trades about 0.08 of its potential returns per unit of risk. Gecina SA is currently generating about -0.01 per unit of risk. If you would invest 2,489 in Vornado Realty Trust on September 2, 2024 and sell it today you would earn a total of 1,561 from holding Vornado Realty Trust or generate 62.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vornado Realty Trust vs. Gecina SA
Performance |
| Timeline |
| Vornado Realty Trust |
| Gecina SA |
Vornado Realty and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vornado Realty and Gecina SA
The main advantage of trading using opposite Vornado Realty and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vornado Realty position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Vornado Realty vs. Austevoll Seafood ASA | Vornado Realty vs. CN MODERN DAIRY | Vornado Realty vs. CHINA OIL AND | Vornado Realty vs. LIFEWAY FOODS |
| Gecina SA vs. IMAGIN MEDICAL INC | Gecina SA vs. Merit Medical Systems | Gecina SA vs. MACOM Technology Solutions | Gecina SA vs. SCOTT TECHNOLOGY |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |