Correlation Between Vestas Wind and LIFEWAY FOODS
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By analyzing existing cross correlation between Vestas Wind Systems and LIFEWAY FOODS, you can compare the effects of market volatilities on Vestas Wind and LIFEWAY FOODS 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 Vestas Wind with a short position of LIFEWAY FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and LIFEWAY FOODS.
Diversification Opportunities for Vestas Wind and LIFEWAY FOODS
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vestas and LIFEWAY is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems and LIFEWAY FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFEWAY FOODS and Vestas Wind 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 Vestas Wind Systems are associated (or correlated) with LIFEWAY FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFEWAY FOODS has no effect on the direction of Vestas Wind i.e., Vestas Wind and LIFEWAY FOODS go up and down completely randomly.
Pair Corralation between Vestas Wind and LIFEWAY FOODS
Assuming the 90 days trading horizon Vestas Wind Systems is expected to under-perform the LIFEWAY FOODS. But the stock apears to be less risky and, when comparing its historical volatility, Vestas Wind Systems is 2.36 times less risky than LIFEWAY FOODS. The stock trades about -0.04 of its potential returns per unit of risk. The LIFEWAY FOODS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 515.00 in LIFEWAY FOODS on October 9, 2024 and sell it today you would earn a total of 1,745 from holding LIFEWAY FOODS or generate 338.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.81% |
Values | Daily Returns |
Vestas Wind Systems vs. LIFEWAY FOODS
Performance |
Timeline |
Vestas Wind Systems |
LIFEWAY FOODS |
Vestas Wind and LIFEWAY FOODS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vestas Wind and LIFEWAY FOODS
The main advantage of trading using opposite Vestas Wind and LIFEWAY FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind position performs unexpectedly, LIFEWAY FOODS 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 LIFEWAY FOODS will offset losses from the drop in LIFEWAY FOODS's long position.Vestas Wind vs. Sinopec Shanghai Petrochemical | Vestas Wind vs. Mitsui Chemicals | Vestas Wind vs. GRUPO CARSO A1 | Vestas Wind vs. CARSALESCOM |
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Check out your portfolio center.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.
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