Correlation Between Connexa Sports and Vestis

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

By analyzing existing cross correlation between Connexa Sports Technologies and Vestis, you can compare the effects of market volatilities on Connexa Sports and Vestis 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 Connexa Sports with a short position of Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Connexa Sports and Vestis.

Diversification Opportunities for Connexa Sports and Vestis

-0.76

Correlation Coefficient

Connexa Sports  Vestis

Pay attention - limited upside

The 3 months correlation between Connexa and Vestis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Connexa Sports Technologies and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis and Connexa Sports 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 Connexa Sports Technologies are associated (or correlated) with Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Connexa Sports i.e., Connexa Sports and Vestis go up and down completely randomly.

Pair Corralation between Connexa Sports and Vestis

Given the investment horizon of 90 days Connexa Sports Technologies is expected to generate 1.97 times more return on investment than Vestis. However, Connexa Sports is 1.97 times more volatile than Vestis. It trades about 0.12 of its potential returns per unit of risk. Vestis is currently generating about -0.02 per unit of risk. If you would invest  120.00  in Connexa Sports Technologies on October 11, 2024 and sell it today you would earn a total of  12.00  from holding Connexa Sports Technologies or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Connexa Sports Technologies  vs.  Vestis

Connexa Sports Techn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Connexa Sports Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Vestis

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vestis are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Vestis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Connexa Sports and Vestis

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

The idea behind Connexa Sports Technologies and Vestis 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.