Correlation Between Vasta Platform and ATA Creativity
Can any of the company-specific risk be diversified away by investing in both Vasta Platform and ATA Creativity 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 Vasta Platform and ATA Creativity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and ATA Creativity Global, you can compare the effects of market volatilities on Vasta Platform and ATA Creativity 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 Vasta Platform with a short position of ATA Creativity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and ATA Creativity.
Diversification Opportunities for Vasta Platform and ATA Creativity
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vasta and ATA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and ATA Creativity Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA Creativity Global and Vasta Platform 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 Vasta Platform are associated (or correlated) with ATA Creativity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA Creativity Global has no effect on the direction of Vasta Platform i.e., Vasta Platform and ATA Creativity go up and down completely randomly.
Pair Corralation between Vasta Platform and ATA Creativity
Given the investment horizon of 90 days Vasta Platform is expected to generate 1.07 times more return on investment than ATA Creativity. However, Vasta Platform is 1.07 times more volatile than ATA Creativity Global. It trades about 0.03 of its potential returns per unit of risk. ATA Creativity Global is currently generating about -0.1 per unit of risk. If you would invest 270.00 in Vasta Platform on November 7, 2024 and sell it today you would earn a total of 8.00 from holding Vasta Platform or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vasta Platform vs. ATA Creativity Global
Performance |
| Timeline |
| Vasta Platform |
| ATA Creativity Global |
Vasta Platform and ATA Creativity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vasta Platform and ATA Creativity
The main advantage of trading using opposite Vasta Platform and ATA Creativity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform position performs unexpectedly, ATA Creativity 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 ATA Creativity will offset losses from the drop in ATA Creativity's long position.| Vasta Platform vs. Strategic Education | Vasta Platform vs. Grand Canyon Education | Vasta Platform vs. Universal Technical Institute | Vasta Platform vs. Laureate Education |
| ATA Creativity vs. Laureate Education | ATA Creativity vs. American Public Education | ATA Creativity vs. Lincoln Educational Services | ATA Creativity vs. Adtalem Global Education |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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