Correlation Between Ion Beam and Vastned Retail

Can any of the company-specific risk be diversified away by investing in both Ion Beam 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 Ion Beam and Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ion Beam Applications and Vastned Retail Belgium, you can compare the effects of market volatilities on Ion Beam 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 Ion Beam with a short position of Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Vastned Retail.

Diversification Opportunities for Ion Beam and Vastned Retail

-0.18

Correlation Coefficient

Ion Beam  Vastned Retail

Good diversification

The 3 months correlation between Ion and Vastned is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications 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 Ion Beam 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 Ion Beam Applications 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 Ion Beam i.e., Ion Beam and Vastned Retail go up and down completely randomly.

Pair Corralation between Ion Beam and Vastned Retail

Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the Vastned Retail. In addition to that, Ion Beam is 1.75 times more volatile than Vastned Retail Belgium. It trades about -0.11 of its total potential returns per unit of risk. Vastned Retail Belgium is currently generating about 0.07 per unit of volatility. If you would invest  2,790  in Vastned Retail Belgium on December 30, 2024 and sell it today you would earn a total of  150.00  from holding Vastned Retail Belgium or generate 5.38% return on investment over 90 days.

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

Ion Beam Applications  vs.  Vastned Retail Belgium

Ion Beam Applications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Vastned Retail Belgium

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vastned Retail Belgium are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Vastned Retail is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ion Beam and Vastned Retail

The main advantage of trading using opposite Ion Beam and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam 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.

The idea behind Ion Beam Applications and Vastned Retail Belgium 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.