Correlation Between VETIVA S and STERLING FINANCIAL
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By analyzing existing cross correlation between VETIVA S P and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on VETIVA S and STERLING FINANCIAL 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 VETIVA S with a short position of STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VETIVA S and STERLING FINANCIAL.
Diversification Opportunities for VETIVA S and STERLING FINANCIAL
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between VETIVA and STERLING is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding VETIVA S P and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL and VETIVA S 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 VETIVA S P are associated (or correlated) with STERLING FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STERLING FINANCIAL has no effect on the direction of VETIVA S i.e., VETIVA S and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between VETIVA S and STERLING FINANCIAL
Assuming the 90 days trading horizon VETIVA S P is expected to generate 38.84 times more return on investment than STERLING FINANCIAL. However, VETIVA S is 38.84 times more volatile than STERLING FINANCIAL HOLDINGS. It trades about 0.16 of its potential returns per unit of risk. STERLING FINANCIAL HOLDINGS is currently generating about 0.1 per unit of risk. If you would invest 20,300 in VETIVA S P on September 12, 2024 and sell it today you would lose (2,000) from holding VETIVA S P or give up 9.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VETIVA S P vs. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| VETIVA S P |
| STERLING FINANCIAL |
VETIVA S and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VETIVA S and STERLING FINANCIAL
The main advantage of trading using opposite VETIVA S and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VETIVA S position performs unexpectedly, STERLING FINANCIAL 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 STERLING FINANCIAL will offset losses from the drop in STERLING FINANCIAL's long position.| VETIVA S vs. MULTIVERSE MINING AND | VETIVA S vs. MULTI TREX INTEGRATED FOODS | VETIVA S vs. STACO INSURANCE PLC | VETIVA S vs. CUSTODIAN INVESTMENT PLC |
| STERLING FINANCIAL vs. UNITY BANK PLC | STERLING FINANCIAL vs. ABBEY MORTGAGE BANK | STERLING FINANCIAL vs. NEM INSURANCE PLC | STERLING FINANCIAL vs. INDUSTRIAL MEDICAL GASES |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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