Correlation Between Victory Bancorp and Sberbank

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

By analyzing existing cross correlation between The Victory Bancorp and Sberbank Of Russia, you can compare the effects of market volatilities on Victory Bancorp and Sberbank 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 Victory Bancorp with a short position of Sberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Bancorp and Sberbank.

Diversification Opportunities for Victory Bancorp and Sberbank

0.0

Correlation Coefficient

Victory Bancorp  Sberbank

Pay attention - limited upside

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

Pair Corralation between Victory Bancorp and Sberbank

If you would invest (100.00) in Sberbank Of Russia on January 24, 2024 and sell it today you would earn a total of  100.00  from holding Sberbank Of Russia or generate -100.0% return on investment over 90 days.

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

The Victory Bancorp  vs.  Sberbank Of Russia

Victory Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Victory Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Victory Bancorp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Sberbank Of Russia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sberbank Of Russia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Sberbank is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Victory Bancorp and Sberbank

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

The idea behind The Victory Bancorp and Sberbank Of Russia 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.