Correlation Between VIRG NATL and FANDIFI TECHNOLOGY

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

By analyzing existing cross correlation between VIRG NATL BANKSH and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on VIRG NATL and FANDIFI TECHNOLOGY 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 VIRG NATL with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRG NATL and FANDIFI TECHNOLOGY.

Diversification Opportunities for VIRG NATL and FANDIFI TECHNOLOGY

0.0

Correlation Coefficient

VIRG NATL  FANDIFI TECHNOLOGY

Pay attention - limited upside

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

Pair Corralation between VIRG NATL and FANDIFI TECHNOLOGY

Assuming the 90 days horizon VIRG NATL is expected to generate 17.17 times less return on investment than FANDIFI TECHNOLOGY. But when comparing it to its historical volatility, VIRG NATL BANKSH is 7.4 times less risky than FANDIFI TECHNOLOGY. It trades about 0.02 of its potential returns per unit of risk. FANDIFI TECHNOLOGY P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.80  in FANDIFI TECHNOLOGY P on December 5, 2024 and sell it today you would lose (0.75) from holding FANDIFI TECHNOLOGY P or give up 93.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.75%
Values	Daily Returns

VIRG NATL BANKSH  vs.  FANDIFI TECHNOLOGY P

VIRG NATL BANKSH

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIRG NATL BANKSH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

Very Weak

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

Pair Trading with VIRG NATL and FANDIFI TECHNOLOGY

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

The idea behind VIRG NATL BANKSH and FANDIFI TECHNOLOGY P 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.