Correlation Between VF and CoinShares Physical

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Can any of the company-specific risk be diversified away by investing in both VF and CoinShares Physical 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 VF and CoinShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VF Corporation and CoinShares Physical Ethereum, you can compare the effects of market volatilities on VF and CoinShares Physical 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 VF with a short position of CoinShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of VF and CoinShares Physical.

Diversification Opportunities for VF and CoinShares Physical

VFCoinSharesDiversified AwayVFCoinSharesDiversified Away100%
-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between VF and CoinShares is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding VF Corp. and CoinShares Physical Ethereum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares Physical and VF 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 VF Corporation are associated (or correlated) with CoinShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares Physical has no effect on the direction of VF i.e., VF and CoinShares Physical go up and down completely randomly.

Pair Corralation between VF and CoinShares Physical

Considering the 90-day investment horizon VF is expected to generate 2.67 times less return on investment than CoinShares Physical. But when comparing it to its historical volatility, VF Corporation is 1.44 times less risky than CoinShares Physical. It trades about 0.02 of its potential returns per unit of risk. CoinShares Physical Ethereum is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  5,638  in CoinShares Physical Ethereum on December 4, 2024 and sell it today you would earn a total of  952.00  from holding CoinShares Physical Ethereum or generate 16.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy57.72%
ValuesDaily Returns

VF Corp.  vs.  CoinShares Physical Ethereum

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0102030405060
JavaScript chart by amCharts 3.21.15VFC ETHE-EUR
       Timeline  
VF Corporation 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in VF Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, VF exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar20212223242526272829
CoinShares Physical 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CoinShares Physical Ethereum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFebMar60708090100110

VF and CoinShares Physical Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.25-5.43-3.61-1.790.03031.93.865.827.789.74 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15VFC ETHE-EUR
       Returns  

Pair Trading with VF and CoinShares Physical

The main advantage of trading using opposite VF and CoinShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VF position performs unexpectedly, CoinShares Physical 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 CoinShares Physical will offset losses from the drop in CoinShares Physical's long position.
The idea behind VF Corporation and CoinShares Physical Ethereum 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.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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