Correlation Between Viva Leisure and Accent
Can any of the company-specific risk be diversified away by investing in both Viva Leisure and Accent 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 Viva Leisure and Accent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Leisure and Accent Group, you can compare the effects of market volatilities on Viva Leisure and Accent 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 Viva Leisure with a short position of Accent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Leisure and Accent.
Diversification Opportunities for Viva Leisure and Accent
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Viva and Accent is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Viva Leisure and Accent Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Group and Viva Leisure 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 Viva Leisure are associated (or correlated) with Accent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Group has no effect on the direction of Viva Leisure i.e., Viva Leisure and Accent go up and down completely randomly.
Pair Corralation between Viva Leisure and Accent
Assuming the 90 days trading horizon Viva Leisure is expected to under-perform the Accent. But the stock apears to be less risky and, when comparing its historical volatility, Viva Leisure is 1.23 times less risky than Accent. The stock trades about -0.03 of its potential returns per unit of risk. The Accent Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Accent Group on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Accent Group or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Leisure vs. Accent Group
Performance |
| Timeline |
| Viva Leisure |
| Accent Group |
Viva Leisure and Accent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Leisure and Accent
The main advantage of trading using opposite Viva Leisure and Accent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Leisure position performs unexpectedly, Accent 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 Accent will offset losses from the drop in Accent's long position.| Viva Leisure vs. Westpac Banking | Viva Leisure vs. Champion Iron | Viva Leisure vs. iShares Global Healthcare | Viva Leisure vs. Peel Mining |
| Accent vs. Advanced Braking Technology | Accent vs. RLF AgTech | Accent vs. Viva Leisure | Accent vs. Hutchison Telecommunications |
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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