Correlation Between IMPERIAL TOBACCO and Vicinity Centres

Can any of the company-specific risk be diversified away by investing in both IMPERIAL TOBACCO and Vicinity Centres 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 IMPERIAL TOBACCO and Vicinity Centres into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IMPERIAL TOBACCO and Vicinity Centres, you can compare the effects of market volatilities on IMPERIAL TOBACCO and Vicinity Centres 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 IMPERIAL TOBACCO with a short position of Vicinity Centres. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMPERIAL TOBACCO and Vicinity Centres.

Diversification Opportunities for IMPERIAL TOBACCO and Vicinity Centres

0.0

Correlation Coefficient

IMPERIAL TOBACCO  Vicinity Centres

Pay attention - limited upside

The 3 months correlation between IMPERIAL and Vicinity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMPERIAL TOBACCO and Vicinity Centres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicinity Centres and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO are associated (or correlated) with Vicinity Centres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicinity Centres has no effect on the direction of IMPERIAL TOBACCO i.e., IMPERIAL TOBACCO and Vicinity Centres go up and down completely randomly.

Pair Corralation between IMPERIAL TOBACCO and Vicinity Centres

If you would invest (100.00) in Vicinity Centres on April 22, 2025 and sell it today you would earn a total of  100.00  from holding Vicinity Centres or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IMPERIAL TOBACCO   vs.  Vicinity Centres

IMPERIAL TOBACCO

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMPERIAL TOBACCO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, IMPERIAL TOBACCO is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Vicinity Centres

Risk-Adjusted Performance

OK

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

Pair Trading with IMPERIAL TOBACCO and Vicinity Centres

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

The idea behind IMPERIAL TOBACCO and Vicinity Centres 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.