Correlation Between Vodka Brands and Serina Therapeutics

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

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

Diversification Opportunities for Vodka Brands and Serina Therapeutics

-0.48

Correlation Coefficient

Vodka Brands  Serina Therapeutics

Very good diversification

The 3 months correlation between Vodka and Serina is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vodka Brands Corp and Serina Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serina Therapeutics and Vodka Brands 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 Vodka Brands Corp are associated (or correlated) with Serina Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serina Therapeutics has no effect on the direction of Vodka Brands i.e., Vodka Brands and Serina Therapeutics go up and down completely randomly.

Pair Corralation between Vodka Brands and Serina Therapeutics

Given the investment horizon of 90 days Vodka Brands Corp is expected to generate 0.76 times more return on investment than Serina Therapeutics. However, Vodka Brands Corp is 1.31 times less risky than Serina Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Serina Therapeutics is currently generating about -0.08 per unit of risk. If you would invest  107.00  in Vodka Brands Corp on December 19, 2024 and sell it today you would earn a total of  7.00  from holding Vodka Brands Corp or generate 6.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.16%
Values	Daily Returns

Vodka Brands Corp  vs.  Serina Therapeutics

Vodka Brands Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vodka Brands Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward-looking signals, Vodka Brands may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Serina Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Vodka Brands and Serina Therapeutics

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

The idea behind Vodka Brands Corp and Serina Therapeutics 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.