Correlation Between SANOK RUBBER and VIAPLAY GROUP

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Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and VIAPLAY GROUP 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 SANOK RUBBER and VIAPLAY GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and VIAPLAY GROUP AB, you can compare the effects of market volatilities on SANOK RUBBER and VIAPLAY GROUP 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 SANOK RUBBER with a short position of VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and VIAPLAY GROUP.

Diversification Opportunities for SANOK RUBBER and VIAPLAY GROUP

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between SANOK and VIAPLAY is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and VIAPLAY GROUP go up and down completely randomly.

Pair Corralation between SANOK RUBBER and VIAPLAY GROUP

Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.87 times more return on investment than VIAPLAY GROUP. However, SANOK RUBBER ZY is 1.15 times less risky than VIAPLAY GROUP. It trades about 0.12 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about -0.04 per unit of risk. If you would invest  341.00  in SANOK RUBBER ZY on September 12, 2024 and sell it today you would earn a total of  99.00  from holding SANOK RUBBER ZY or generate 29.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SANOK RUBBER ZY  vs.  VIAPLAY GROUP AB

 Performance 
       Timeline  
SANOK RUBBER ZY 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SANOK RUBBER ZY are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SANOK RUBBER reported solid returns over the last few months and may actually be approaching a breakup point.
VIAPLAY GROUP AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days VIAPLAY GROUP AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

SANOK RUBBER and VIAPLAY GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SANOK RUBBER and VIAPLAY GROUP

The main advantage of trading using opposite SANOK RUBBER and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.
The idea behind SANOK RUBBER ZY and VIAPLAY GROUP AB 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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