Correlation Between 49327M3E2 and Vita Coco

Can any of the company-specific risk be diversified away by investing in both 49327M3E2 and Vita Coco 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 49327M3E2 and Vita Coco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KEY 415 08 AUG 25 and Vita Coco, you can compare the effects of market volatilities on 49327M3E2 and Vita Coco 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 49327M3E2 with a short position of Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49327M3E2 and Vita Coco.

Diversification Opportunities for 49327M3E2 and Vita Coco

-0.1

Correlation Coefficient

49327M3E2  Vita Coco

Good diversification

The 3 months correlation between 49327M3E2 and Vita is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding KEY 415 08 AUG 25 and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco and 49327M3E2 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 KEY 415 08 AUG 25 are associated (or correlated) with Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of 49327M3E2 i.e., 49327M3E2 and Vita Coco go up and down completely randomly.

Pair Corralation between 49327M3E2 and Vita Coco

Assuming the 90 days trading horizon KEY 415 08 AUG 25 is expected to under-perform the Vita Coco. But the bond apears to be less risky and, when comparing its historical volatility, KEY 415 08 AUG 25 is 12.88 times less risky than Vita Coco. The bond trades about -0.01 of its potential returns per unit of risk. The Vita Coco is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,802  in Vita Coco on October 8, 2024 and sell it today you would earn a total of  644.00  from holding Vita Coco or generate 22.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

KEY 415 08 AUG 25  vs.  Vita Coco

KEY 415 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 415 08 AUG 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 49327M3E2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vita Coco

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vita Coco are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Vita Coco displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 49327M3E2 and Vita Coco

The main advantage of trading using opposite 49327M3E2 and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49327M3E2 position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco's long position.

The idea behind KEY 415 08 AUG 25 and Vita Coco 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.