Correlation Between VIAPLAY GROUP and InPlay Oil

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both VIAPLAY GROUP and InPlay Oil 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 VIAPLAY GROUP and InPlay Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIAPLAY GROUP AB and InPlay Oil Corp, you can compare the effects of market volatilities on VIAPLAY GROUP and InPlay Oil 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 VIAPLAY GROUP with a short position of InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIAPLAY GROUP and InPlay Oil.

Diversification Opportunities for VIAPLAY GROUP and InPlay Oil

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between VIAPLAY and InPlay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding VIAPLAY GROUP AB and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and VIAPLAY GROUP 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 VIAPLAY GROUP AB are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of VIAPLAY GROUP i.e., VIAPLAY GROUP and InPlay Oil go up and down completely randomly.

Pair Corralation between VIAPLAY GROUP and InPlay Oil

Assuming the 90 days horizon VIAPLAY GROUP AB is expected to generate 10.4 times more return on investment than InPlay Oil. However, VIAPLAY GROUP is 10.4 times more volatile than InPlay Oil Corp. It trades about 0.02 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.02 per unit of risk. If you would invest  2,150  in VIAPLAY GROUP AB on August 29, 2024 and sell it today you would lose (2,144) from holding VIAPLAY GROUP AB or give up 99.74% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

VIAPLAY GROUP AB  vs.  InPlay Oil Corp

 Performance 
       Timeline  
VIAPLAY GROUP AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days VIAPLAY GROUP AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
InPlay Oil Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days InPlay Oil Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

VIAPLAY GROUP and InPlay Oil Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VIAPLAY GROUP and InPlay Oil

The main advantage of trading using opposite VIAPLAY GROUP and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIAPLAY GROUP position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.
The idea behind VIAPLAY GROUP AB and InPlay Oil Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments