Correlation Between Main International and ViaSat
Can any of the company-specific risk be diversified away by investing in both Main International and ViaSat 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 Main International and ViaSat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main International ETF and ViaSat Inc, you can compare the effects of market volatilities on Main International and ViaSat 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 Main International with a short position of ViaSat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and ViaSat.
Diversification Opportunities for Main International and ViaSat
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Main and ViaSat is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and ViaSat Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViaSat Inc and Main International 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 Main International ETF are associated (or correlated) with ViaSat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViaSat Inc has no effect on the direction of Main International i.e., Main International and ViaSat go up and down completely randomly.
Pair Corralation between Main International and ViaSat
Given the investment horizon of 90 days Main International ETF is expected to generate 0.17 times more return on investment than ViaSat. However, Main International ETF is 6.02 times less risky than ViaSat. It trades about 0.04 of its potential returns per unit of risk. ViaSat Inc is currently generating about -0.05 per unit of risk. If you would invest 2,056 in Main International ETF on September 1, 2024 and sell it today you would earn a total of 235.00 from holding Main International ETF or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Main International ETF vs. ViaSat Inc
Performance |
| Timeline |
| Main International ETF |
| ViaSat Inc |
Main International and ViaSat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and ViaSat
The main advantage of trading using opposite Main International and ViaSat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, ViaSat 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 ViaSat will offset losses from the drop in ViaSat's long position.| Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
| ViaSat vs. Comtech Telecommunications Corp | ViaSat vs. NETGEAR | ViaSat vs. KVH Industries | ViaSat vs. Silicom |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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