Correlation Between Viva Leisure and BTC Health
Can any of the company-specific risk be diversified away by investing in both Viva Leisure and BTC Health 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 BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Leisure and BTC Health Limited, you can compare the effects of market volatilities on Viva Leisure and BTC Health 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 BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Leisure and BTC Health.
Diversification Opportunities for Viva Leisure and BTC Health
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viva and BTC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Viva Leisure and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited 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 BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Viva Leisure i.e., Viva Leisure and BTC Health go up and down completely randomly.
Pair Corralation between Viva Leisure and BTC Health
Assuming the 90 days trading horizon Viva Leisure is expected to generate 0.52 times more return on investment than BTC Health. However, Viva Leisure is 1.91 times less risky than BTC Health. It trades about 0.04 of its potential returns per unit of risk. BTC Health Limited is currently generating about -0.14 per unit of risk. If you would invest 141.00 in Viva Leisure on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Viva Leisure or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Viva Leisure vs. BTC Health Limited
Performance |
| Timeline |
| Viva Leisure |
| BTC Health Limited |
Viva Leisure and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Leisure and BTC Health
The main advantage of trading using opposite Viva Leisure and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Leisure position performs unexpectedly, BTC Health 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 BTC Health will offset losses from the drop in BTC Health's long position.| Viva Leisure vs. Neurotech International | Viva Leisure vs. Super Retail Group | Viva Leisure vs. Thorney Technologies | Viva Leisure vs. Ainsworth Game Technology |
| BTC Health vs. Tombador Iron | BTC Health vs. COAST ENTERTAINMENT HOLDINGS | BTC Health vs. Autosports Group | BTC Health vs. Ironbark Capital |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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