Correlation Between Viad Corp and Nisun International

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

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

Diversification Opportunities for Viad Corp and Nisun International

-0.6

Correlation Coefficient

Viad Corp  Nisun International

Excellent diversification

The 3 months correlation between Viad and Nisun is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Viad Corp and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and Viad 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 Viad Corp are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Viad Corp i.e., Viad Corp and Nisun International go up and down completely randomly.

Pair Corralation between Viad Corp and Nisun International

Considering the 90-day investment horizon Viad Corp is expected to generate 4.74 times less return on investment than Nisun International. But when comparing it to its historical volatility, Viad Corp is 3.22 times less risky than Nisun International. It trades about 0.06 of its potential returns per unit of risk. Nisun International Enterprise is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  318.00  in Nisun International Enterprise on September 4, 2024 and sell it today you would earn a total of  459.00  from holding Nisun International Enterprise or generate 144.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Viad Corp  vs.  Nisun International Enterprise

Viad Corp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Viad Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Viad Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Nisun International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nisun International Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Viad Corp and Nisun International

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

The idea behind Viad Corp and Nisun International Enterprise 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.