Correlation Between Plaza Centers and Ybox Real

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

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

Diversification Opportunities for Plaza Centers and Ybox Real

-0.75

Correlation Coefficient

Plaza Centers  Ybox Real

Pay attention - limited upside

The 3 months correlation between Plaza and Ybox is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Centers NV and Ybox Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ybox Real Estate and Plaza Centers 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 Plaza Centers NV are associated (or correlated) with Ybox Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ybox Real Estate has no effect on the direction of Plaza Centers i.e., Plaza Centers and Ybox Real go up and down completely randomly.

Pair Corralation between Plaza Centers and Ybox Real

Assuming the 90 days trading horizon Plaza Centers NV is expected to generate 2.83 times more return on investment than Ybox Real. However, Plaza Centers is 2.83 times more volatile than Ybox Real Estate. It trades about 0.08 of its potential returns per unit of risk. Ybox Real Estate is currently generating about 0.1 per unit of risk. If you would invest  12,000  in Plaza Centers NV on September 14, 2024 and sell it today you would earn a total of  8,220  from holding Plaza Centers NV or generate 68.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.52%
Values	Daily Returns

Plaza Centers NV  vs.  Ybox Real Estate

Plaza Centers NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plaza Centers NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ybox Real Estate

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ybox Real Estate are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ybox Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plaza Centers and Ybox Real

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

The idea behind Plaza Centers NV and Ybox Real Estate 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.