Correlation Between Vastned Retail and Hologic

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Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Hologic 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 Vastned Retail and Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and Hologic, you can compare the effects of market volatilities on Vastned Retail and Hologic 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 Vastned Retail with a short position of Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Hologic.

Diversification Opportunities for Vastned Retail and Hologic

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Vastned and Hologic is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic and Vastned Retail 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 Vastned Retail NV are associated (or correlated) with Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Vastned Retail i.e., Vastned Retail and Hologic go up and down completely randomly.

Pair Corralation between Vastned Retail and Hologic

Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.71 times more return on investment than Hologic. However, Vastned Retail NV is 1.41 times less risky than Hologic. It trades about 0.64 of its potential returns per unit of risk. Hologic is currently generating about -0.07 per unit of risk. If you would invest  2,060  in Vastned Retail NV on October 15, 2024 and sell it today you would earn a total of  100.00  from holding Vastned Retail NV or generate 4.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy56.25%
ValuesDaily Returns

Vastned Retail NV  vs.  Hologic

 Performance 
       Timeline  
Vastned Retail NV 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Vastned Retail NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vastned Retail is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Hologic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hologic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Vastned Retail and Hologic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vastned Retail and Hologic

The main advantage of trading using opposite Vastned Retail and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.
The idea behind Vastned Retail NV and Hologic 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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