Correlation Between Main Street and Vinci Partners
Can any of the company-specific risk be diversified away by investing in both Main Street and Vinci Partners 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 Street and Vinci Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main Street Capital and Vinci Partners Investments, you can compare the effects of market volatilities on Main Street and Vinci Partners 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 Street with a short position of Vinci Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Street and Vinci Partners.
Diversification Opportunities for Main Street and Vinci Partners
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Main and Vinci is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Main Street Capital and Vinci Partners Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Partners Inves and Main Street 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 Street Capital are associated (or correlated) with Vinci Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Partners Inves has no effect on the direction of Main Street i.e., Main Street and Vinci Partners go up and down completely randomly.
Pair Corralation between Main Street and Vinci Partners
Given the investment horizon of 90 days Main Street Capital is expected to generate 0.43 times more return on investment than Vinci Partners. However, Main Street Capital is 2.31 times less risky than Vinci Partners. It trades about 0.13 of its potential returns per unit of risk. Vinci Partners Investments is currently generating about 0.02 per unit of risk. If you would invest 3,365 in Main Street Capital on October 25, 2024 and sell it today you would earn a total of 2,708 from holding Main Street Capital or generate 80.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main Street Capital vs. Vinci Partners Investments
Performance |
| Timeline |
| Main Street Capital |
| Vinci Partners Inves |
Main Street and Vinci Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main Street and Vinci Partners
The main advantage of trading using opposite Main Street and Vinci Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main Street position performs unexpectedly, Vinci Partners 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 Vinci Partners will offset losses from the drop in Vinci Partners' long position.| Main Street vs. KKR Co LP | Main Street vs. Carlyle Group | Main Street vs. Blackstone Group | Main Street vs. Blue Owl Capital |
| Vinci Partners vs. Blue Owl Capital | Vinci Partners vs. P10 Inc | Vinci Partners vs. Diamond Hill Investment | Vinci Partners vs. Cion Investment Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |