Correlation Between USWE SPORTS and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and VIVA WINE 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 USWE SPORTS and VIVA WINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and VIVA WINE GROUP, you can compare the effects of market volatilities on USWE SPORTS and VIVA WINE 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 USWE SPORTS with a short position of VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and VIVA WINE.
Diversification Opportunities for USWE SPORTS and VIVA WINE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USWE and VIVA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP and USWE 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 USWE SPORTS AB are associated (or correlated) with VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and VIVA WINE go up and down completely randomly.
Pair Corralation between USWE SPORTS and VIVA WINE
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 1.73 times more return on investment than VIVA WINE. However, USWE SPORTS is 1.73 times more volatile than VIVA WINE GROUP. It trades about 0.27 of its potential returns per unit of risk. VIVA WINE GROUP is currently generating about -0.18 per unit of risk. If you would invest 71.00 in USWE SPORTS AB on October 18, 2024 and sell it today you would earn a total of 8.00 from holding USWE SPORTS AB or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. VIVA WINE GROUP
Performance |
| Timeline |
| USWE SPORTS AB |
| VIVA WINE GROUP |
USWE SPORTS and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and VIVA WINE
The main advantage of trading using opposite USWE SPORTS and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| USWE SPORTS vs. BOS BETTER ONLINE | USWE SPORTS vs. SALESFORCE INC CDR | USWE SPORTS vs. Minerals Technologies | USWE SPORTS vs. CARSALESCOM |
| VIVA WINE vs. Universal Display | VIVA WINE vs. ANTA SPORTS PRODUCT | VIVA WINE vs. Playmates Toys Limited | VIVA WINE vs. USWE SPORTS AB |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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