Correlation Between VIAPLAY GROUP and Caseys General

Can any of the company-specific risk be diversified away by investing in both VIAPLAY GROUP and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on VIAPLAY GROUP and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIAPLAY GROUP and Caseys General.

Diversification Opportunities for VIAPLAY GROUP and Caseys General

-0.34

Correlation Coefficient

VIAPLAY GROUP  Caseys General

Very good diversification

The 3 months correlation between VIAPLAY and Caseys is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding VIAPLAY GROUP AB and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of VIAPLAY GROUP i.e., VIAPLAY GROUP and Caseys General go up and down completely randomly.

Pair Corralation between VIAPLAY GROUP and Caseys General

Assuming the 90 days horizon VIAPLAY GROUP AB is expected to generate 35.08 times more return on investment than Caseys General. However, VIAPLAY GROUP is 35.08 times more volatile than Caseys General Stores. It trades about 0.18 of its potential returns per unit of risk. Caseys General Stores is currently generating about -0.04 per unit of risk. If you would invest  4.92  in VIAPLAY GROUP AB on December 23, 2024 and sell it today you would lose (1.79) from holding VIAPLAY GROUP AB or give up 36.38% of portfolio value over 90 days.

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

VIAPLAY GROUP AB  vs.  Caseys General Stores

VIAPLAY GROUP AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIAPLAY GROUP AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, VIAPLAY GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

Caseys General Stores

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caseys General Stores has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Caseys General 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 Caseys General

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

The idea behind VIAPLAY GROUP AB and Caseys General Stores 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.