Correlation Between Calculus VCT and VF Corp

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

Diversification Opportunities for Calculus VCT and VF Corp

Calculus0R30Diversified AwayCalculus0R30Diversified Away100%
-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Calculus and 0R30 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calculus VCT plc and VF Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corp and Calculus VCT 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 Calculus VCT plc are associated (or correlated) with VF Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corp has no effect on the direction of Calculus VCT i.e., Calculus VCT and VF Corp go up and down completely randomly.

Pair Corralation between Calculus VCT and VF Corp

Assuming the 90 days trading horizon Calculus VCT plc is expected to under-perform the VF Corp. But the stock apears to be less risky and, when comparing its historical volatility, Calculus VCT plc is 2.59 times less risky than VF Corp. The stock trades about -0.13 of its potential returns per unit of risk. The VF Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,813  in VF Corp on October 20, 2024 and sell it today you would earn a total of  513.00  from holding VF Corp or generate 28.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.88%
ValuesDaily Returns

Calculus VCT plc  vs.  VF Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-5051015
JavaScript chart by amCharts 3.21.15CLC 0R30
       Timeline  
Calculus VCT plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calculus VCT plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5152535455565758
VF Corp 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in VF Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, VF Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1718192021222324

Calculus VCT and VF Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.53-1.92-1.31-0.7-0.09450.461.041.622.2 0.050.100.15
JavaScript chart by amCharts 3.21.15CLC 0R30
       Returns  

Pair Trading with Calculus VCT and VF Corp

The main advantage of trading using opposite Calculus VCT and VF Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calculus VCT position performs unexpectedly, VF Corp 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 VF Corp will offset losses from the drop in VF Corp's long position.
The idea behind Calculus VCT plc and VF Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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