Correlation Between VIS Containers and Foodlink
Can any of the company-specific risk be diversified away by investing in both VIS Containers and Foodlink 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 VIS Containers and Foodlink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIS Containers Manufacturing and Foodlink AE, you can compare the effects of market volatilities on VIS Containers and Foodlink 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 VIS Containers with a short position of Foodlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIS Containers and Foodlink.
Diversification Opportunities for VIS Containers and Foodlink
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VIS and Foodlink is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding VIS Containers Manufacturing and Foodlink AE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodlink AE and VIS Containers 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 VIS Containers Manufacturing are associated (or correlated) with Foodlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodlink AE has no effect on the direction of VIS Containers i.e., VIS Containers and Foodlink go up and down completely randomly.
Pair Corralation between VIS Containers and Foodlink
If you would invest 32.00 in Foodlink AE on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Foodlink AE or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIS Containers Manufacturing vs. Foodlink AE
Performance |
| Timeline |
| VIS Containers Manuf |
| Foodlink AE |
VIS Containers and Foodlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIS Containers and Foodlink
The main advantage of trading using opposite VIS Containers and Foodlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIS Containers position performs unexpectedly, Foodlink 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 Foodlink will offset losses from the drop in Foodlink's long position.| VIS Containers vs. Thrace Plastics Holding | VIS Containers vs. Flexopack Socit Anonyme | VIS Containers vs. National Bank of | VIS Containers vs. Lampsa Hellenic Hotels |
| Foodlink vs. Frigoglass SAIC | Foodlink vs. Autohellas SA | Foodlink vs. Public Power | Foodlink vs. Intralot SA Integrated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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