Correlation Between Vasta Platform and Macys
Can any of the company-specific risk be diversified away by investing in both Vasta Platform and Macys 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 Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and Macys Inc, you can compare the effects of market volatilities on Vasta Platform and Macys 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 Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and Macys.
Diversification Opportunities for Vasta Platform and Macys
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vasta and Macys is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Vasta Platform i.e., Vasta Platform and Macys go up and down completely randomly.
Pair Corralation between Vasta Platform and Macys
Given the investment horizon of 90 days Vasta Platform is expected to generate 0.96 times more return on investment than Macys. However, Vasta Platform is 1.04 times less risky than Macys. It trades about 0.47 of its potential returns per unit of risk. Macys Inc is currently generating about -0.16 per unit of risk. If you would invest 230.00 in Vasta Platform on November 9, 2024 and sell it today you would earn a total of 58.00 from holding Vasta Platform or generate 25.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Vasta Platform vs. Macys Inc
Performance |
| Timeline |
| Vasta Platform |
| Macys Inc |
Vasta Platform and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vasta Platform and Macys
The main advantage of trading using opposite Vasta Platform and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform position performs unexpectedly, Macys 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 Macys will offset losses from the drop in Macys' long position.| Vasta Platform vs. Strategic Education | Vasta Platform vs. Grand Canyon Education | Vasta Platform vs. Universal Technical Institute | Vasta Platform vs. Laureate 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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