Correlation Between VHAI and Nuvei Corp
Can any of the company-specific risk be diversified away by investing in both VHAI and Nuvei Corp 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 VHAI and Nuvei Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VHAI and Nuvei Corp, you can compare the effects of market volatilities on VHAI and Nuvei Corp 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 VHAI with a short position of Nuvei Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of VHAI and Nuvei Corp.
Diversification Opportunities for VHAI and Nuvei Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VHAI and Nuvei is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding VHAI and Nuvei Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvei Corp and VHAI 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 VHAI are associated (or correlated) with Nuvei Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvei Corp has no effect on the direction of VHAI i.e., VHAI and Nuvei Corp go up and down completely randomly.
Pair Corralation between VHAI and Nuvei Corp
Given the investment horizon of 90 days VHAI is expected to under-perform the Nuvei Corp. In addition to that, VHAI is 3.51 times more volatile than Nuvei Corp. It trades about -0.17 of its total potential returns per unit of risk. Nuvei Corp is currently generating about 0.03 per unit of volatility. If you would invest 2,662 in Nuvei Corp on September 3, 2024 and sell it today you would earn a total of 737.00 from holding Nuvei Corp or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 39.84% |
| Values | Daily Returns |
VHAI vs. Nuvei Corp
Performance |
| Timeline |
| VHAI |
| Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
VHAI and Nuvei Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VHAI and Nuvei Corp
The main advantage of trading using opposite VHAI and Nuvei Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VHAI position performs unexpectedly, Nuvei Corp 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 Nuvei Corp will offset losses from the drop in Nuvei Corp's long position.The idea behind VHAI and Nuvei Corp 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.| Nuvei Corp vs. Robinhood Markets | Nuvei Corp vs. Palantir Technologies Class | Nuvei Corp vs. GigaCloud Technology Class | Nuvei Corp vs. Crowdstrike Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |