Correlation Between Carlton Investments and Unibail Rodamco

Can any of the company-specific risk be diversified away by investing in both Carlton Investments and Unibail Rodamco 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 Carlton Investments and Unibail Rodamco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carlton Investments and Unibail Rodamco Westfield SE, you can compare the effects of market volatilities on Carlton Investments and Unibail Rodamco 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 Carlton Investments with a short position of Unibail Rodamco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and Unibail Rodamco.

Diversification Opportunities for Carlton Investments and Unibail Rodamco

0.69

Correlation Coefficient

Carlton Investments  Unibail Rodamco

Poor diversification

The 3 months correlation between Carlton and Unibail is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments and Unibail Rodamco Westfield SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibail Rodamco West and Carlton Investments 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 Carlton Investments are associated (or correlated) with Unibail Rodamco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibail Rodamco West has no effect on the direction of Carlton Investments i.e., Carlton Investments and Unibail Rodamco go up and down completely randomly.

Pair Corralation between Carlton Investments and Unibail Rodamco

Assuming the 90 days trading horizon Carlton Investments is expected to generate 2.45 times less return on investment than Unibail Rodamco. But when comparing it to its historical volatility, Carlton Investments is 1.54 times less risky than Unibail Rodamco. It trades about 0.07 of its potential returns per unit of risk. Unibail Rodamco Westfield SE is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  599.00  in Unibail Rodamco Westfield SE on December 23, 2024 and sell it today you would earn a total of  61.00  from holding Unibail Rodamco Westfield SE or generate 10.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Carlton Investments  vs.  Unibail Rodamco Westfield SE

Carlton Investments

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Carlton Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Carlton Investments is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Unibail Rodamco West

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unibail Rodamco Westfield SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Unibail Rodamco may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Carlton Investments and Unibail Rodamco

The main advantage of trading using opposite Carlton Investments and Unibail Rodamco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlton Investments position performs unexpectedly, Unibail Rodamco 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 Unibail Rodamco will offset losses from the drop in Unibail Rodamco's long position.

The idea behind Carlton Investments and Unibail Rodamco Westfield SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.