Correlation Between Home Invest and Immo Moury

Can any of the company-specific risk be diversified away by investing in both Home Invest and Immo Moury 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 Home Invest and Immo Moury into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Home Invest Belgium and Immo Moury SICAF, you can compare the effects of market volatilities on Home Invest and Immo Moury 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 Home Invest with a short position of Immo Moury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Invest and Immo Moury.

Diversification Opportunities for Home Invest and Immo Moury

-0.21

Correlation Coefficient

Home Invest  Immo Moury

Very good diversification

The 3 months correlation between Home and Immo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Home Invest Belgium and Immo Moury SICAF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immo Moury SICAF and Home Invest 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 Home Invest Belgium are associated (or correlated) with Immo Moury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immo Moury SICAF has no effect on the direction of Home Invest i.e., Home Invest and Immo Moury go up and down completely randomly.

Pair Corralation between Home Invest and Immo Moury

Assuming the 90 days trading horizon Home Invest Belgium is expected to generate 0.98 times more return on investment than Immo Moury. However, Home Invest Belgium is 1.02 times less risky than Immo Moury. It trades about 0.08 of its potential returns per unit of risk. Immo Moury SICAF is currently generating about -0.02 per unit of risk. If you would invest  1,682  in Home Invest Belgium on December 27, 2024 and sell it today you would earn a total of  108.00  from holding Home Invest Belgium or generate 6.42% return on investment over 90 days.

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

Home Invest Belgium  vs.  Immo Moury SICAF

Home Invest Belgium

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Home Invest Belgium are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Home Invest may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Immo Moury SICAF

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immo Moury SICAF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Immo Moury is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Home Invest and Immo Moury

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

The idea behind Home Invest Belgium and Immo Moury SICAF 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.