Correlation Between Vita Coco and Inventiva
Can any of the company-specific risk be diversified away by investing in both Vita Coco and Inventiva 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 Vita Coco and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vita Coco and Inventiva SA, you can compare the effects of market volatilities on Vita Coco and Inventiva 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 Vita Coco with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and Inventiva.
Diversification Opportunities for Vita Coco and Inventiva
Pay attention - limited upside
The 3 months correlation between Vita and Inventiva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and Inventiva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva SA and Vita Coco 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 Vita Coco are associated (or correlated) with Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva SA has no effect on the direction of Vita Coco i.e., Vita Coco and Inventiva go up and down completely randomly.
Pair Corralation between Vita Coco and Inventiva
Given the investment horizon of 90 days Vita Coco is expected to generate 2.57 times more return on investment than Inventiva. However, Vita Coco is 2.57 times more volatile than Inventiva SA. It trades about 0.08 of its potential returns per unit of risk. Inventiva SA is currently generating about -0.05 per unit of risk. If you would invest 1,397 in Vita Coco on September 19, 2024 and sell it today you would earn a total of 2,171 from holding Vita Coco or generate 155.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Vita Coco vs. Inventiva SA
Performance |
| Timeline |
| Vita Coco |
| Inventiva SA |
Vita Coco and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and Inventiva
The main advantage of trading using opposite Vita Coco and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Coca Cola Consolidated |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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