Correlation Between VIAPLAY GROUP and State Bank

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

Diversification Opportunities for VIAPLAY GROUP and State Bank

-0.61

Correlation Coefficient

VIAPLAY GROUP  State Bank

Excellent diversification

The 3 months correlation between VIAPLAY and State is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VIAPLAY GROUP AB and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of VIAPLAY GROUP i.e., VIAPLAY GROUP and State Bank go up and down completely randomly.

Pair Corralation between VIAPLAY GROUP and State Bank

Assuming the 90 days horizon VIAPLAY GROUP AB is expected to under-perform the State Bank. In addition to that, VIAPLAY GROUP is 2.33 times more volatile than State Bank of. It trades about -0.04 of its total potential returns per unit of risk. State Bank of is currently generating about 0.13 per unit of volatility. If you would invest  8,300  in State Bank of on September 12, 2024 and sell it today you would earn a total of  1,300  from holding State Bank of or generate 15.66% return on investment over 90 days.

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

VIAPLAY GROUP AB  vs.  State Bank of

VIAPLAY GROUP AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VIAPLAY GROUP AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

State Bank

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in State Bank of are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, State Bank reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VIAPLAY GROUP and State Bank

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

The idea behind VIAPLAY GROUP AB and State Bank of 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.