Correlation Between STILLFRONT GRP and VERISK ANLYTCS

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

By analyzing existing cross correlation between STILLFRONT GRP AB and VERISK ANLYTCS A, you can compare the effects of market volatilities on STILLFRONT GRP and VERISK ANLYTCS 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 STILLFRONT GRP with a short position of VERISK ANLYTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STILLFRONT GRP and VERISK ANLYTCS.

Diversification Opportunities for STILLFRONT GRP and VERISK ANLYTCS

0.09

Correlation Coefficient

STILLFRONT GRP  VERISK ANLYTCS

Significant diversification

The 3 months correlation between STILLFRONT and VERISK is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding STILLFRONT GRP AB and VERISK ANLYTCS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERISK ANLYTCS A and STILLFRONT GRP 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 STILLFRONT GRP AB are associated (or correlated) with VERISK ANLYTCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERISK ANLYTCS A has no effect on the direction of STILLFRONT GRP i.e., STILLFRONT GRP and VERISK ANLYTCS go up and down completely randomly.

Pair Corralation between STILLFRONT GRP and VERISK ANLYTCS

Assuming the 90 days trading horizon STILLFRONT GRP AB is expected to under-perform the VERISK ANLYTCS. In addition to that, STILLFRONT GRP is 2.65 times more volatile than VERISK ANLYTCS A. It trades about -0.17 of its total potential returns per unit of risk. VERISK ANLYTCS A is currently generating about 0.08 per unit of volatility. If you would invest  26,590  in VERISK ANLYTCS A on October 22, 2024 and sell it today you would earn a total of  420.00  from holding VERISK ANLYTCS A or generate 1.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

STILLFRONT GRP AB  vs.  VERISK ANLYTCS A

STILLFRONT GRP AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in STILLFRONT GRP AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, STILLFRONT GRP reported solid returns over the last few months and may actually be approaching a breakup point.

VERISK ANLYTCS A

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days VERISK ANLYTCS A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, VERISK ANLYTCS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with STILLFRONT GRP and VERISK ANLYTCS

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

The idea behind STILLFRONT GRP AB and VERISK ANLYTCS A 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.