Correlation Between Valencia Capital and IA Financial
Can any of the company-specific risk be diversified away by investing in both Valencia Capital and IA Financial 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 Valencia Capital and IA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valencia Capital and iA Financial, you can compare the effects of market volatilities on Valencia Capital and IA Financial 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 Valencia Capital with a short position of IA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valencia Capital and IA Financial.
Diversification Opportunities for Valencia Capital and IA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valencia and IAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valencia Capital and iA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iA Financial and Valencia Capital 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 Valencia Capital are associated (or correlated) with IA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iA Financial has no effect on the direction of Valencia Capital i.e., Valencia Capital and IA Financial go up and down completely randomly.
Pair Corralation between Valencia Capital and IA Financial
If you would invest 8.00 in Valencia Capital on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Valencia Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Valencia Capital vs. iA Financial
Performance |
| Timeline |
| Valencia Capital |
| iA Financial |
Valencia Capital and IA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valencia Capital and IA Financial
The main advantage of trading using opposite Valencia Capital and IA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valencia Capital position performs unexpectedly, IA Financial 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 IA Financial will offset losses from the drop in IA Financial's long position.| Valencia Capital vs. Arizona Gold Silver | Valencia Capital vs. Verizon Communications CDR | Valencia Capital vs. Globex Mining Enterprises | Valencia Capital vs. North American Construction |
| IA Financial vs. Great West Lifeco | IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. Sun Life Financial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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