Correlation Between Vastned Retail and Tokentus Investment

Can any of the company-specific risk be diversified away by investing in both Vastned Retail and Tokentus Investment 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 Tokentus Investment 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 tokentus investment AG, you can compare the effects of market volatilities on Vastned Retail and Tokentus Investment 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 Tokentus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Tokentus Investment.

Diversification Opportunities for Vastned Retail and Tokentus Investment

0.69

Correlation Coefficient

Vastned Retail  Tokentus Investment

Poor diversification

The 3 months correlation between Vastned and Tokentus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and tokentus investment AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on tokentus investment 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 Tokentus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of tokentus investment has no effect on the direction of Vastned Retail i.e., Vastned Retail and Tokentus Investment go up and down completely randomly.

Pair Corralation between Vastned Retail and Tokentus Investment

Assuming the 90 days horizon Vastned Retail is expected to generate 1.25 times less return on investment than Tokentus Investment. But when comparing it to its historical volatility, Vastned Retail NV is 2.41 times less risky than Tokentus Investment. It trades about 0.25 of its potential returns per unit of risk. tokentus investment AG is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  72.00  in tokentus investment AG on March 13, 2024 and sell it today you would earn a total of  19.00  from holding tokentus investment AG or generate 26.39% return on investment over 90 days.

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

Vastned Retail NV  vs.  tokentus investment AG

Vastned Retail NV

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vastned Retail NV are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vastned Retail reported solid returns over the last few months and may actually be approaching a breakup point.

tokentus investment

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in tokentus investment AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Tokentus Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vastned Retail and Tokentus Investment

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

The idea behind Vastned Retail NV and tokentus investment AG 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 Transaction History module to view history of all your transactions and understand their impact on performance.