Correlation Between Vita Coco and NSTAR
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By analyzing existing cross correlation between Vita Coco and NSTAR ELEC 32, you can compare the effects of market volatilities on Vita Coco and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and NSTAR.
Diversification Opportunities for Vita Coco and NSTAR
Excellent diversification
The 3 months correlation between Vita and NSTAR is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and NSTAR ELEC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 32 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 32 has no effect on the direction of Vita Coco i.e., Vita Coco and NSTAR go up and down completely randomly.
Pair Corralation between Vita Coco and NSTAR
Given the investment horizon of 90 days Vita Coco is expected to generate 8.08 times more return on investment than NSTAR. However, Vita Coco is 8.08 times more volatile than NSTAR ELEC 32. It trades about 0.06 of its potential returns per unit of risk. NSTAR ELEC 32 is currently generating about -0.02 per unit of risk. If you would invest 2,666 in Vita Coco on September 14, 2024 and sell it today you would earn a total of 980.50 from holding Vita Coco or generate 36.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.96% |
| Values | Daily Returns |
Vita Coco vs. NSTAR ELEC 32
Performance |
| Timeline |
| Vita Coco |
| NSTAR ELEC 32 |
Vita Coco and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and NSTAR
The main advantage of trading using opposite Vita Coco and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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