Correlation Between VIAPLAY GROUP and CGN Power

Can any of the company-specific risk be diversified away by investing in both VIAPLAY GROUP and CGN Power 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 VIAPLAY GROUP and CGN Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIAPLAY GROUP AB and CGN Power Co, you can compare the effects of market volatilities on VIAPLAY GROUP and CGN Power 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 VIAPLAY GROUP with a short position of CGN Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIAPLAY GROUP and CGN Power.

Diversification Opportunities for VIAPLAY GROUP and CGN Power

0.0

Correlation Coefficient

VIAPLAY GROUP  CGN Power

Pay attention - limited upside

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

Pair Corralation between VIAPLAY GROUP and CGN Power

If you would invest  5.53  in VIAPLAY GROUP AB on October 9, 2024 and sell it today you would earn a total of  0.40  from holding VIAPLAY GROUP AB or generate 7.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

VIAPLAY GROUP AB  vs.  CGN Power Co

VIAPLAY GROUP AB

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VIAPLAY GROUP AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, VIAPLAY GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CGN Power

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CGN Power Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CGN Power is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VIAPLAY GROUP and CGN Power

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

The idea behind VIAPLAY GROUP AB and CGN Power Co 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.