Correlation Between Wereldhave Belgium and Wereldhave

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

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

Diversification Opportunities for Wereldhave Belgium and Wereldhave

0.82

Correlation Coefficient

Wereldhave Belgium  Wereldhave

Very poor diversification

The 3 months correlation between Wereldhave and Wereldhave is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wereldhave Belgium Naamloze and Wereldhave NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wereldhave NV and Wereldhave Belgium 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 Wereldhave Belgium Naamloze are associated (or correlated) with Wereldhave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wereldhave NV has no effect on the direction of Wereldhave Belgium i.e., Wereldhave Belgium and Wereldhave go up and down completely randomly.

Pair Corralation between Wereldhave Belgium and Wereldhave

Assuming the 90 days horizon Wereldhave Belgium is expected to generate 1.73 times less return on investment than Wereldhave. In addition to that, Wereldhave Belgium is 1.44 times more volatile than Wereldhave NV. It trades about 0.11 of its total potential returns per unit of risk. Wereldhave NV is currently generating about 0.27 per unit of volatility. If you would invest  1,519  in Wereldhave NV on April 22, 2025 and sell it today you would earn a total of  239.00  from holding Wereldhave NV or generate 15.73% return on investment over 90 days.

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

Wereldhave Belgium Naamloze  vs.  Wereldhave NV

Wereldhave Belgium

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wereldhave Belgium Naamloze are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Wereldhave Belgium may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Wereldhave NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wereldhave NV are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Wereldhave unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wereldhave Belgium and Wereldhave

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

The idea behind Wereldhave Belgium Naamloze and Wereldhave NV 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.