Correlation Between Vasta Platform and Afya
Can any of the company-specific risk be diversified away by investing in both Vasta Platform and Afya 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 Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and Afya, you can compare the effects of market volatilities on Vasta Platform and Afya 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 Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and Afya.
Diversification Opportunities for Vasta Platform and Afya
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vasta and Afya is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya 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 Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Vasta Platform i.e., Vasta Platform and Afya go up and down completely randomly.
Pair Corralation between Vasta Platform and Afya
Given the investment horizon of 90 days Vasta Platform is expected to under-perform the Afya. In addition to that, Vasta Platform is 1.15 times more volatile than Afya. It trades about -0.08 of its total potential returns per unit of risk. Afya is currently generating about -0.02 per unit of volatility. If you would invest 1,962 in Afya on August 28, 2024 and sell it today you would lose (276.00) from holding Afya or give up 14.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Vasta Platform vs. Afya
Performance |
| Timeline |
| Vasta Platform |
| Afya |
Vasta Platform and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vasta Platform and Afya
The main advantage of trading using opposite Vasta Platform and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Vasta Platform vs. Wah Fu Education | Vasta Platform vs. Golden Sun Education | Vasta Platform vs. Elite Education Group | Vasta Platform vs. QuantaSing Group Limited |
| Afya vs. American Public Education | Afya vs. Lincoln Educational Services | Afya 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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