Correlation Between VIVA WINE and Global Ship
Can any of the company-specific risk be diversified away by investing in both VIVA WINE and Global Ship 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 VIVA WINE and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIVA WINE GROUP and Global Ship Lease, you can compare the effects of market volatilities on VIVA WINE and Global Ship 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 VIVA WINE with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIVA WINE and Global Ship.
Diversification Opportunities for VIVA WINE and Global Ship
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between VIVA and Global is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding VIVA WINE GROUP and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and VIVA WINE 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 VIVA WINE GROUP are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of VIVA WINE i.e., VIVA WINE and Global Ship go up and down completely randomly.
Pair Corralation between VIVA WINE and Global Ship
Assuming the 90 days horizon VIVA WINE GROUP is expected to generate 0.9 times more return on investment than Global Ship. However, VIVA WINE GROUP is 1.11 times less risky than Global Ship. It trades about -0.01 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.09 per unit of risk. If you would invest 358.00 in VIVA WINE GROUP on September 2, 2024 and sell it today you would lose (18.00) from holding VIVA WINE GROUP or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIVA WINE GROUP vs. Global Ship Lease
Performance |
| Timeline |
| VIVA WINE GROUP |
| Global Ship Lease |
VIVA WINE and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIVA WINE and Global Ship
The main advantage of trading using opposite VIVA WINE and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIVA WINE position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| VIVA WINE vs. LG Display Co | VIVA WINE vs. SBA Communications Corp | VIVA WINE vs. PLAY2CHILL SA ZY | VIVA WINE vs. VIAPLAY GROUP AB |
| Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings | Global Ship vs. Origin Agritech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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