Correlation Between VIRGIN WINES and CRAWFORD +

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

By analyzing existing cross correlation between VIRGIN WINES UK and CRAWFORD A NV, you can compare the effects of market volatilities on VIRGIN WINES and CRAWFORD + 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 VIRGIN WINES with a short position of CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and CRAWFORD +.

Diversification Opportunities for VIRGIN WINES and CRAWFORD +

0.0

Correlation Coefficient

VIRGIN WINES  CRAWFORD +

Pay attention - limited upside

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

Pair Corralation between VIRGIN WINES and CRAWFORD +

If you would invest  80.00  in VIRGIN WINES UK on October 15, 2024 and sell it today you would earn a total of  0.00  from holding VIRGIN WINES UK or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

VIRGIN WINES UK  vs.  CRAWFORD A NV

VIRGIN WINES UK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VIRGIN WINES UK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, VIRGIN WINES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

CRAWFORD A NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CRAWFORD A NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, CRAWFORD + is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIRGIN WINES and CRAWFORD +

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

The idea behind VIRGIN WINES UK and CRAWFORD A NV 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.