Correlation Between Viva Wine and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Viva Wine and Awardit AB 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 Viva Wine and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Wine Group and Awardit AB, you can compare the effects of market volatilities on Viva Wine and Awardit AB 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 Viva Wine with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Wine and Awardit AB.
Diversification Opportunities for Viva Wine and Awardit AB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viva and Awardit is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Viva Wine Group and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and Viva Wine 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 Viva Wine Group are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Viva Wine i.e., Viva Wine and Awardit AB go up and down completely randomly.
Pair Corralation between Viva Wine and Awardit AB
Assuming the 90 days trading horizon Viva Wine Group is expected to under-perform the Awardit AB. In addition to that, Viva Wine is 1.1 times more volatile than Awardit AB. It trades about -0.03 of its total potential returns per unit of risk. Awardit AB is currently generating about 0.0 per unit of volatility. If you would invest 13,050 in Awardit AB on August 26, 2024 and sell it today you would lose (50.00) from holding Awardit AB or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Wine Group vs. Awardit AB
Performance |
| Timeline |
| Viva Wine Group |
| Awardit AB |
Viva Wine and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Wine and Awardit AB
The main advantage of trading using opposite Viva Wine and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Wine position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB's long position.| Viva Wine vs. Cint Group AB | Viva Wine vs. Nordic Waterproofing Holding | Viva Wine vs. RVRC Holding AB | Viva Wine vs. Synsam AB |
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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 Positions Ratings module to 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.
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