Correlation Between VictoryShares THB and REX FANG

Can any of the company-specific risk be diversified away by investing in both VictoryShares THB and REX FANG 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 VictoryShares THB and REX FANG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VictoryShares THB Mid and REX FANG Innovation, you can compare the effects of market volatilities on VictoryShares THB and REX FANG 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 VictoryShares THB with a short position of REX FANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of VictoryShares THB and REX FANG.

Diversification Opportunities for VictoryShares THB and REX FANG

0.0

Correlation Coefficient

VictoryShares THB  REX FANG

Pay attention - limited upside

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

Pair Corralation between VictoryShares THB and REX FANG

If you would invest (100.00) in REX FANG Innovation on December 22, 2024 and sell it today you would earn a total of  100.00  from holding REX FANG Innovation or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VictoryShares THB Mid  vs.  REX FANG Innovation

VictoryShares THB Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days VictoryShares THB Mid has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, VictoryShares THB is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

REX FANG Innovation

Risk-Adjusted Performance

Very Weak

Over the last 90 days REX FANG Innovation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, REX FANG is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with VictoryShares THB and REX FANG

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

The idea behind VictoryShares THB Mid and REX FANG Innovation 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 CEOs Directory module to screen CEOs from public companies around the world.