Correlation Between Vasta Platform and Altria
Can any of the company-specific risk be diversified away by investing in both Vasta Platform and Altria 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 Altria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and Altria Group, you can compare the effects of market volatilities on Vasta Platform and Altria 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 Altria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and Altria.
Diversification Opportunities for Vasta Platform and Altria
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vasta and Altria is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Altria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altria Group 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 Altria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altria Group has no effect on the direction of Vasta Platform i.e., Vasta Platform and Altria go up and down completely randomly.
Pair Corralation between Vasta Platform and Altria
Given the investment horizon of 90 days Vasta Platform is expected to generate 6.36 times more return on investment than Altria. However, Vasta Platform is 6.36 times more volatile than Altria Group. It trades about 0.06 of its potential returns per unit of risk. Altria Group is currently generating about -0.29 per unit of risk. If you would invest 221.00 in Vasta Platform on October 11, 2024 and sell it today you would earn a total of 9.00 from holding Vasta Platform or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vasta Platform vs. Altria Group
Performance |
| Timeline |
| Vasta Platform |
| Altria Group |
Vasta Platform and Altria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vasta Platform and Altria
The main advantage of trading using opposite Vasta Platform and Altria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform position performs unexpectedly, Altria 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 Altria will offset losses from the drop in Altria'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 |
| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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