Correlation Between VELA TECHNOLPLC and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both VELA TECHNOLPLC and CEWE Stiftung 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 VELA TECHNOLPLC and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VELA TECHNOLPLC LS 0001 and CEWE Stiftung Co, you can compare the effects of market volatilities on VELA TECHNOLPLC and CEWE Stiftung 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 VELA TECHNOLPLC with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of VELA TECHNOLPLC and CEWE Stiftung.
Diversification Opportunities for VELA TECHNOLPLC and CEWE Stiftung
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VELA and CEWE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VELA TECHNOLPLC LS 0001 and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and VELA TECHNOLPLC 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 VELA TECHNOLPLC LS 0001 are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of VELA TECHNOLPLC i.e., VELA TECHNOLPLC and CEWE Stiftung go up and down completely randomly.
Pair Corralation between VELA TECHNOLPLC and CEWE Stiftung
If you would invest 9,930 in CEWE Stiftung Co on October 9, 2024 and sell it today you would earn a total of 430.00 from holding CEWE Stiftung Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
VELA TECHNOLPLC LS 0001 vs. CEWE Stiftung Co
Performance |
| Timeline |
| VELA TECHNOLPLC LS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CEWE Stiftung |
VELA TECHNOLPLC and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VELA TECHNOLPLC and CEWE Stiftung
The main advantage of trading using opposite VELA TECHNOLPLC and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VELA TECHNOLPLC position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc |
| CEWE Stiftung vs. Comba Telecom Systems | CEWE Stiftung vs. COMBA TELECOM SYST | CEWE Stiftung vs. Planet Fitness | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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