Correlation Between Maple Peak and VIP Entertainment
Can any of the company-specific risk be diversified away by investing in both Maple Peak and VIP Entertainment 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 Maple Peak and VIP Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and VIP Entertainment Technologies, you can compare the effects of market volatilities on Maple Peak and VIP Entertainment 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 Maple Peak with a short position of VIP Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and VIP Entertainment.
Diversification Opportunities for Maple Peak and VIP Entertainment
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Maple and VIP is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and VIP Entertainment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIP Entertainment and Maple Peak 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 Maple Peak Investments are associated (or correlated) with VIP Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIP Entertainment has no effect on the direction of Maple Peak i.e., Maple Peak and VIP Entertainment go up and down completely randomly.
Pair Corralation between Maple Peak and VIP Entertainment
Assuming the 90 days horizon Maple Peak Investments is expected to generate 1.14 times more return on investment than VIP Entertainment. However, Maple Peak is 1.14 times more volatile than VIP Entertainment Technologies. It trades about 0.04 of its potential returns per unit of risk. VIP Entertainment Technologies is currently generating about -0.03 per unit of risk. If you would invest 1.50 in Maple Peak Investments on October 16, 2024 and sell it today you would lose (0.50) from holding Maple Peak Investments or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Peak Investments vs. VIP Entertainment Technologies
Performance |
| Timeline |
| Maple Peak Investments |
| VIP Entertainment |
Maple Peak and VIP Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and VIP Entertainment
The main advantage of trading using opposite Maple Peak and VIP Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, VIP Entertainment 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 VIP Entertainment will offset losses from the drop in VIP Entertainment's long position.| Maple Peak vs. Titanium Transportation Group | Maple Peak vs. Thunderbird Entertainment Group | Maple Peak vs. Cogeco Communications | Maple Peak vs. T2 Metals Corp |
| VIP Entertainment vs. Sparx Technology | VIP Entertainment vs. Maple Peak Investments | VIP Entertainment vs. CNJ Capital Investments | VIP Entertainment vs. InPlay Oil 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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