Correlation Between Afya and DOMINION
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By analyzing existing cross correlation between Afya and DOMINION ENERGY INC, you can compare the effects of market volatilities on Afya and DOMINION 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 Afya with a short position of DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and DOMINION.
Diversification Opportunities for Afya and DOMINION
Average diversification
The 3 months correlation between Afya and DOMINION is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Afya and DOMINION ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION ENERGY INC and Afya 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 Afya are associated (or correlated) with DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION ENERGY INC has no effect on the direction of Afya i.e., Afya and DOMINION go up and down completely randomly.
Pair Corralation between Afya and DOMINION
Given the investment horizon of 90 days Afya is expected to under-perform the DOMINION. But the stock apears to be less risky and, when comparing its historical volatility, Afya is 2.49 times less risky than DOMINION. The stock trades about -0.19 of its potential returns per unit of risk. The DOMINION ENERGY INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,083 in DOMINION ENERGY INC on September 14, 2024 and sell it today you would earn a total of 19.00 from holding DOMINION ENERGY INC or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Afya vs. DOMINION ENERGY INC
Performance |
| Timeline |
| Afya |
| DOMINION ENERGY INC |
Afya and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and DOMINION
The main advantage of trading using opposite Afya and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION's long position.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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