Correlation Between Via Varejo and Naked Wines
Can any of the company-specific risk be diversified away by investing in both Via Varejo and Naked Wines 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 Via Varejo and Naked Wines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Varejo SA and Naked Wines plc, you can compare the effects of market volatilities on Via Varejo and Naked Wines 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 Via Varejo with a short position of Naked Wines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Varejo and Naked Wines.
Diversification Opportunities for Via Varejo and Naked Wines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Via and Naked is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Via Varejo SA and Naked Wines plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naked Wines plc and Via Varejo 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 Via Varejo SA are associated (or correlated) with Naked Wines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naked Wines plc has no effect on the direction of Via Varejo i.e., Via Varejo and Naked Wines go up and down completely randomly.
Pair Corralation between Via Varejo and Naked Wines
If you would invest 277.00 in Naked Wines plc on January 6, 2025 and sell it today you would earn a total of 111.00 from holding Naked Wines plc or generate 40.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Via Varejo SA vs. Naked Wines plc
Performance |
| Timeline |
| Via Varejo SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Naked Wines plc |
Via Varejo and Naked Wines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Varejo and Naked Wines
The main advantage of trading using opposite Via Varejo and Naked Wines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Varejo position performs unexpectedly, Naked Wines 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 Naked Wines will offset losses from the drop in Naked Wines' long position.| Via Varejo vs. Paranovus Entertainment Technology | Via Varejo vs. Tscan Therapeutics | Via Varejo vs. Astral Foods Limited | Via Varejo vs. Tarsus Pharmaceuticals |
| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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