Correlation Between Naked Wines and Via Varejo
Can any of the company-specific risk be diversified away by investing in both Naked Wines and Via Varejo 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 Naked Wines and Via Varejo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Wines plc and Via Varejo SA, you can compare the effects of market volatilities on Naked Wines and Via Varejo 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 Naked Wines with a short position of Via Varejo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and Via Varejo.
Diversification Opportunities for Naked Wines and Via Varejo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Via is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and Via Varejo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Varejo SA and Naked Wines 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 Naked Wines plc are associated (or correlated) with Via Varejo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Varejo SA has no effect on the direction of Naked Wines i.e., Naked Wines and Via Varejo go up and down completely randomly.
Pair Corralation between Naked Wines and Via Varejo
If you would invest 520.00 in Naked Wines plc on September 12, 2024 and sell it today you would lose (250.00) from holding Naked Wines plc or give up 48.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Naked Wines plc vs. Via Varejo SA
Performance |
| Timeline |
| Naked Wines plc |
| Via Varejo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Naked Wines and Via Varejo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and Via Varejo
The main advantage of trading using opposite Naked Wines and Via Varejo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, Via Varejo 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 Via Varejo will offset losses from the drop in Via Varejo's long position.| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
| Via Varejo vs. Keurig Dr Pepper | Via Varejo vs. Naked Wines plc | Via Varejo vs. The Mosaic | Via Varejo vs. Sensient Technologies |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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