Correlation Between VIP Entertainment and Maple Leaf

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

Diversification Opportunities for VIP Entertainment and Maple Leaf

VIPMapleDiversified AwayVIPMapleDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between VIP and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIP Entertainment Technologies and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and VIP Entertainment 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 VIP Entertainment Technologies are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of VIP Entertainment i.e., VIP Entertainment and Maple Leaf go up and down completely randomly.

Pair Corralation between VIP Entertainment and Maple Leaf

If you would invest  2,104  in Maple Leaf Foods on November 18, 2024 and sell it today you would earn a total of  40.00  from holding Maple Leaf Foods or generate 1.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

VIP Entertainment Technologies  vs.  Maple Leaf Foods

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15VIP MFI
       Timeline  
VIP Entertainment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days VIP Entertainment Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, VIP Entertainment is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0050.00505
Maple Leaf Foods 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Maple Leaf Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Maple Leaf is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.52222.523

VIP Entertainment and Maple Leaf Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15VIP MFI
       Returns  

Pair Trading with VIP Entertainment and Maple Leaf

The main advantage of trading using opposite VIP Entertainment and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIP Entertainment position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.
The idea behind VIP Entertainment Technologies and Maple Leaf Foods 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.
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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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