Correlation Between VIAPLAY GROUP and HOYA
Can any of the company-specific risk be diversified away by investing in both VIAPLAY GROUP and HOYA 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 HOYA 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 HOYA Corporation, you can compare the effects of market volatilities on VIAPLAY GROUP and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIAPLAY GROUP and HOYA.
Diversification Opportunities for VIAPLAY GROUP and HOYA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIAPLAY and HOYA is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding VIAPLAY GROUP AB and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of VIAPLAY GROUP i.e., VIAPLAY GROUP and HOYA go up and down completely randomly.
Pair Corralation between VIAPLAY GROUP and HOYA
Assuming the 90 days horizon VIAPLAY GROUP AB is expected to under-perform the HOYA. In addition to that, VIAPLAY GROUP is 2.33 times more volatile than HOYA Corporation. It trades about -0.01 of its total potential returns per unit of risk. HOYA Corporation is currently generating about 0.03 per unit of volatility. If you would invest 12,085 in HOYA Corporation on August 28, 2024 and sell it today you would earn a total of 115.00 from holding HOYA Corporation or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIAPLAY GROUP AB vs. HOYA Corp.
Performance |
| Timeline |
| VIAPLAY GROUP AB |
| HOYA |
VIAPLAY GROUP and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIAPLAY GROUP and HOYA
The main advantage of trading using opposite VIAPLAY GROUP and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIAPLAY GROUP position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA's long position.| VIAPLAY GROUP vs. The Walt Disney | VIAPLAY GROUP vs. Superior Plus Corp | VIAPLAY GROUP vs. NMI Holdings | VIAPLAY GROUP vs. Origin Agritech |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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