Correlation Between WFD Unibail and Klépierre

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

By analyzing existing cross correlation between WFD Unibail Rodamco and Klpierre SA, you can compare the effects of market volatilities on WFD Unibail and Klépierre 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 WFD Unibail with a short position of Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of WFD Unibail and Klépierre.

Diversification Opportunities for WFD Unibail and Klépierre

0.69

Correlation Coefficient

WFD Unibail  Klépierre

Poor diversification

The 3 months correlation between WFD and Klépierre is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding WFD Unibail Rodamco and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and WFD Unibail 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 WFD Unibail Rodamco are associated (or correlated) with Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of WFD Unibail i.e., WFD Unibail and Klépierre go up and down completely randomly.

Pair Corralation between WFD Unibail and Klépierre

Assuming the 90 days horizon WFD Unibail Rodamco is expected to generate 0.94 times more return on investment than Klépierre. However, WFD Unibail Rodamco is 1.06 times less risky than Klépierre. It trades about 0.18 of its potential returns per unit of risk. Klpierre SA is currently generating about 0.04 per unit of risk. If you would invest  8,276  in WFD Unibail Rodamco on May 5, 2025 and sell it today you would earn a total of  1,621  from holding WFD Unibail Rodamco or generate 19.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

WFD Unibail Rodamco  vs.  Klpierre SA

WFD Unibail Rodamco

Risk-Adjusted Performance

Good

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

Klpierre SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Klpierre SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Klépierre is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with WFD Unibail and Klépierre

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

The idea behind WFD Unibail Rodamco and Klpierre SA 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.

Check out your portfolio center.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.