Correlation Between Virgin Group and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Virgin Group and 360 Finance 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 Virgin Group and 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virgin Group Acquisition and 360 Finance, you can compare the effects of market volatilities on Virgin Group and 360 Finance 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 Virgin Group with a short position of 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Group and 360 Finance.
Diversification Opportunities for Virgin Group and 360 Finance
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Virgin and 360 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Group Acquisition and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance and Virgin Group 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 Virgin Group Acquisition are associated (or correlated) with 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Virgin Group i.e., Virgin Group and 360 Finance go up and down completely randomly.
Pair Corralation between Virgin Group and 360 Finance
Given the investment horizon of 90 days Virgin Group is expected to generate 2.76 times less return on investment than 360 Finance. In addition to that, Virgin Group is 1.71 times more volatile than 360 Finance. It trades about 0.01 of its total potential returns per unit of risk. 360 Finance is currently generating about 0.07 per unit of volatility. If you would invest 1,847 in 360 Finance on November 9, 2024 and sell it today you would earn a total of 2,402 from holding 360 Finance or generate 130.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virgin Group Acquisition vs. 360 Finance
Performance |
| Timeline |
| Virgin Group Acquisition |
| 360 Finance |
Virgin Group and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Group and 360 Finance
The main advantage of trading using opposite Virgin Group and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Group position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Virgin Group vs. Mannatech Incorporated | Virgin Group vs. Edgewell Personal Care | Virgin Group vs. Inter Parfums | Virgin Group vs. Nu Skin Enterprises |
| 360 Finance vs. Turning Point Brands | 360 Finance vs. British American Tobacco | 360 Finance vs. Philip Morris International | 360 Finance vs. Japan Tobacco ADR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |