Correlation Between Vintcom Technology and AddTech Hub

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

By analyzing existing cross correlation between Vintcom Technology PCL and AddTech Hub Public, you can compare the effects of market volatilities on Vintcom Technology and AddTech Hub 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 Vintcom Technology with a short position of AddTech Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vintcom Technology and AddTech Hub.

Diversification Opportunities for Vintcom Technology and AddTech Hub

-0.11

Correlation Coefficient

Vintcom Technology  AddTech Hub

Good diversification

The 3 months correlation between Vintcom and AddTech is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Vintcom Technology PCL and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public and Vintcom Technology 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 Vintcom Technology PCL are associated (or correlated) with AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of Vintcom Technology i.e., Vintcom Technology and AddTech Hub go up and down completely randomly.

Pair Corralation between Vintcom Technology and AddTech Hub

Assuming the 90 days trading horizon Vintcom Technology PCL is expected to under-perform the AddTech Hub. But the stock apears to be less risky and, when comparing its historical volatility, Vintcom Technology PCL is 1.77 times less risky than AddTech Hub. The stock trades about -0.3 of its potential returns per unit of risk. The AddTech Hub Public is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  481.00  in AddTech Hub Public on October 6, 2024 and sell it today you would earn a total of  84.00  from holding AddTech Hub Public or generate 17.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Vintcom Technology PCL  vs.  AddTech Hub Public

Vintcom Technology PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vintcom Technology PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AddTech Hub Public

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AddTech Hub Public are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, AddTech Hub disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vintcom Technology and AddTech Hub

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

The idea behind Vintcom Technology PCL and AddTech Hub Public 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.