Correlation Between ETFS Coffee and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee and VIAPLAY GROUP 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 ETFS Coffee and VIAPLAY GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and VIAPLAY GROUP AB, you can compare the effects of market volatilities on ETFS Coffee and VIAPLAY GROUP 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 ETFS Coffee with a short position of VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and VIAPLAY GROUP.
Diversification Opportunities for ETFS Coffee and VIAPLAY GROUP
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ETFS and VIAPLAY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB and ETFS Coffee 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 ETFS Coffee ETC are associated (or correlated) with VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of ETFS Coffee i.e., ETFS Coffee and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between ETFS Coffee and VIAPLAY GROUP
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 1.65 times more return on investment than VIAPLAY GROUP. However, ETFS Coffee is 1.65 times more volatile than VIAPLAY GROUP AB. It trades about 0.05 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.04 per unit of risk. If you would invest 109.00 in ETFS Coffee ETC on November 19, 2024 and sell it today you would earn a total of 7,034 from holding ETFS Coffee ETC or generate 6453.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.0% |
| Values | Daily Returns |
ETFS Coffee ETC vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| ETFS Coffee ETC |
| VIAPLAY GROUP AB |
ETFS Coffee and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and VIAPLAY GROUP
The main advantage of trading using opposite ETFS Coffee and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| ETFS Coffee vs. Xenia Hotels Resorts | ETFS Coffee vs. Emperor Entertainment Hotel | ETFS Coffee vs. Sunstone Hotel Investors | ETFS Coffee vs. Pebblebrook Hotel Trust |
| VIAPLAY GROUP vs. Compagnie Plastic Omnium | VIAPLAY GROUP vs. Plastic Omnium | VIAPLAY GROUP vs. The Yokohama Rubber | VIAPLAY GROUP vs. MINCO SILVER |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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