Correlation Between Vestis and Smurfit
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By analyzing existing cross correlation between Vestis and Smurfit Kappa Group, you can compare the effects of market volatilities on Vestis and Smurfit 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 Vestis with a short position of Smurfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Smurfit.
Diversification Opportunities for Vestis and Smurfit
Very good diversification
The 3 months correlation between Vestis and Smurfit is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and Smurfit Kappa Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smurfit Kappa Group and Vestis 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 Vestis are associated (or correlated) with Smurfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smurfit Kappa Group has no effect on the direction of Vestis i.e., Vestis and Smurfit go up and down completely randomly.
Pair Corralation between Vestis and Smurfit
Given the investment horizon of 90 days Vestis is expected to generate 34.65 times more return on investment than Smurfit. However, Vestis is 34.65 times more volatile than Smurfit Kappa Group. It trades about 0.21 of its potential returns per unit of risk. Smurfit Kappa Group is currently generating about 0.09 per unit of risk. If you would invest 1,408 in Vestis on September 12, 2024 and sell it today you would earn a total of 254.00 from holding Vestis or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Vestis vs. Smurfit Kappa Group
Performance |
| Timeline |
| Vestis |
| Smurfit Kappa Group |
Vestis and Smurfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and Smurfit
The main advantage of trading using opposite Vestis and Smurfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis position performs unexpectedly, Smurfit 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 Smurfit will offset losses from the drop in Smurfit's long position.| Vestis vs. Ryder System | Vestis vs. Air Lease | Vestis vs. Willis Lease Finance | Vestis vs. AerCap Holdings NV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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