Correlation Between VFD GROUP and STACO INSURANCE

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

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

Diversification Opportunities for VFD GROUP and STACO INSURANCE

0.0

Correlation Coefficient

VFD GROUP  STACO INSURANCE

Pay attention - limited upside

The 3 months correlation between VFD and STACO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VFD GROUP and STACO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STACO INSURANCE PLC and VFD 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 VFD GROUP are associated (or correlated) with STACO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STACO INSURANCE PLC has no effect on the direction of VFD GROUP i.e., VFD GROUP and STACO INSURANCE go up and down completely randomly.

Pair Corralation between VFD GROUP and STACO INSURANCE

If you would invest  48.00  in STACO INSURANCE PLC on December 27, 2024 and sell it today you would earn a total of  0.00  from holding STACO INSURANCE PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VFD GROUP  vs.  STACO INSURANCE PLC

VFD GROUP

Risk-Adjusted Performance

Insignificant

Over the last 90 days VFD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VFD GROUP is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

STACO INSURANCE PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days STACO INSURANCE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, STACO INSURANCE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VFD GROUP and STACO INSURANCE

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

The idea behind VFD GROUP and STACO INSURANCE PLC 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.