Correlation Between International Money and Via Renewables

Can any of the company-specific risk be diversified away by investing in both International Money and Via Renewables 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 International Money and Via Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between International Money Express and Via Renewables, you can compare the effects of market volatilities on International Money and Via Renewables 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 International Money with a short position of Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Money and Via Renewables.

Diversification Opportunities for International Money and Via Renewables

-0.91

Correlation Coefficient

International Money  Via Renewables

Pay attention - limited upside

The 3 months correlation between International and Via is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables and International Money 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 International Money Express are associated (or correlated) with Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of International Money i.e., International Money and Via Renewables go up and down completely randomly.

Pair Corralation between International Money and Via Renewables

Given the investment horizon of 90 days International Money Express is expected to under-perform the Via Renewables. In addition to that, International Money is 4.13 times more volatile than Via Renewables. It trades about -0.25 of its total potential returns per unit of risk. Via Renewables is currently generating about 0.13 per unit of volatility. If you would invest  2,287  in Via Renewables on December 30, 2024 and sell it today you would earn a total of  129.00  from holding Via Renewables or generate 5.64% return on investment over 90 days.

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

International Money Express  vs.  Via Renewables

International Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days International Money Express has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Via Renewables

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Via Renewables is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with International Money and Via Renewables

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

The idea behind International Money Express and Via Renewables 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.