Correlation Between National Retail and VIVENDI UNSPONARD

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

By analyzing existing cross correlation between National Retail Properties and VIVENDI UNSPONARD EO, you can compare the effects of market volatilities on National Retail and VIVENDI UNSPONARD 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 National Retail with a short position of VIVENDI UNSPONARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and VIVENDI UNSPONARD.

Diversification Opportunities for National Retail and VIVENDI UNSPONARD

0.48

Correlation Coefficient

National Retail  VIVENDI UNSPONARD

Very weak diversification

The 3 months correlation between National and VIVENDI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and VIVENDI UNSPONARD EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVENDI UNSPONARD and National 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 National Retail Properties are associated (or correlated) with VIVENDI UNSPONARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVENDI UNSPONARD has no effect on the direction of National Retail i.e., National Retail and VIVENDI UNSPONARD go up and down completely randomly.

Pair Corralation between National Retail and VIVENDI UNSPONARD

Assuming the 90 days trading horizon National Retail is expected to generate 9.84 times less return on investment than VIVENDI UNSPONARD. But when comparing it to its historical volatility, National Retail Properties is 2.45 times less risky than VIVENDI UNSPONARD. It trades about 0.05 of its potential returns per unit of risk. VIVENDI UNSPONARD EO is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  248.00  in VIVENDI UNSPONARD EO on April 23, 2025 and sell it today you would earn a total of  86.00  from holding VIVENDI UNSPONARD EO or generate 34.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

National Retail Properties  vs.  VIVENDI UNSPONARD EO

National Retail Prop

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in National Retail Properties are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, National Retail is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

VIVENDI UNSPONARD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIVENDI UNSPONARD EO are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, VIVENDI UNSPONARD reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Retail and VIVENDI UNSPONARD

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

The idea behind National Retail Properties and VIVENDI UNSPONARD EO 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.