Two Equities Correlation Analysis
Specify exactly 2 symbols:
VTNA.TA
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Vitania and NYSE Composite
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vitania and NYSE is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vitania and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Vitania 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 Vitania are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Vitania i.e., Vitania and NYSE Composite go up and down completely randomly.
Pair Corralation between Vitania and NYSE Composite
Assuming the 90 days trading horizon Vitania is expected to under-perform the NYSE Composite. In addition to that, Vitania is 4.77 times more volatile than NYSE Composite. It trades about -0.1 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.27 per unit of volatility. If you would invest 1,813,008 in NYSE Composite on January 20, 2024 and sell it today you would lose (67,131) from holding NYSE Composite or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Vitania vs. NYSE Composite
Performance |
| Timeline |
Vitania and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Vitania
Pair trading matchups for Vitania
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Vitania and NYSE Composite
The main advantage of trading using opposite Vitania and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitania position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Vitania vs. Migdal Insurance | Vitania vs. The Phoenix Holdings | Vitania vs. Harel Insurance Investments | Vitania vs. Clal Insurance Enterprises |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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