Correlation Between VF and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both VF and STAG Industrial, 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 STAG Industrial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VF Corporation and STAG Industrial,, you can compare the effects of market volatilities on VF and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of VF and STAG Industrial,.
Diversification Opportunities for VF and STAG Industrial,
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VF and STAG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding VF Corp. and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of VF i.e., VF and STAG Industrial, go up and down completely randomly.
Pair Corralation between VF and STAG Industrial,
Assuming the 90 days trading horizon VF Corporation is expected to generate 1.05 times more return on investment than STAG Industrial,. However, VF is 1.05 times more volatile than STAG Industrial,. It trades about 0.31 of its potential returns per unit of risk. STAG Industrial, is currently generating about -0.04 per unit of risk. If you would invest 6,811 in VF Corporation on October 30, 2024 and sell it today you would earn a total of 911.00 from holding VF Corporation or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
VF Corp. vs. STAG Industrial,
Performance |
| Timeline |
| VF Corporation |
| STAG Industrial, |
VF and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VF and STAG Industrial,
The main advantage of trading using opposite VF and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VF position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| VF vs. Cognizant Technology Solutions | VF vs. Charter Communications | VF vs. Annaly Capital Management, | VF vs. Seagate Technology Holdings |
| STAG Industrial, vs. JB Hunt Transport | STAG Industrial, vs. G2D Investments | STAG Industrial, vs. Cognizant Technology Solutions | STAG Industrial, vs. Take Two Interactive Software |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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