Correlation Between Vaso Corp and MultiPlan

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

By analyzing existing cross correlation between Vaso Corp and MultiPlan, you can compare the effects of market volatilities on Vaso Corp and MultiPlan 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 Vaso Corp with a short position of MultiPlan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaso Corp and MultiPlan.

Diversification Opportunities for Vaso Corp and MultiPlan

-0.54

Correlation Coefficient

Vaso Corp  MultiPlan

Excellent diversification

The 3 months correlation between Vaso and MultiPlan is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vaso Corp and MultiPlan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MultiPlan and Vaso Corp 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 Vaso Corp are associated (or correlated) with MultiPlan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MultiPlan has no effect on the direction of Vaso Corp i.e., Vaso Corp and MultiPlan go up and down completely randomly.

Pair Corralation between Vaso Corp and MultiPlan

If you would invest  944.00  in MultiPlan on September 3, 2024 and sell it today you would lose (155.00) from holding MultiPlan or give up 16.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Vaso Corp  vs.  MultiPlan

Vaso Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaso Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Vaso Corp is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

MultiPlan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MultiPlan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, MultiPlan is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Vaso Corp and MultiPlan

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

The idea behind Vaso Corp and MultiPlan 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.