Correlation Between Stagwell and Vantiv

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

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

Diversification Opportunities for Stagwell and Vantiv

0.0

Correlation Coefficient

Stagwell  Vantiv

Pay attention - limited upside

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

Pair Corralation between Stagwell and Vantiv

If you would invest  595.00  in Stagwell on January 30, 2024 and sell it today you would earn a total of  17.00  from holding Stagwell or generate 2.86% return on investment over 90 days.

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

Stagwell  vs.  Vantiv Inc

Stagwell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stagwell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Stagwell is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Vantiv Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vantiv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Vantiv is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Stagwell and Vantiv

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

The idea behind Stagwell and Vantiv Inc 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.