Correlation Between Winland Holdings and VivoPower International
Can any of the company-specific risk be diversified away by investing in both Winland Holdings and VivoPower International 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 Winland Holdings and VivoPower International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winland Holdings and VivoPower International PLC, you can compare the effects of market volatilities on Winland Holdings and VivoPower International 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 Winland Holdings with a short position of VivoPower International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winland Holdings and VivoPower International.
Diversification Opportunities for Winland Holdings and VivoPower International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Winland and VivoPower is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Winland Holdings and VivoPower International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VivoPower International and Winland Holdings 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 Winland Holdings are associated (or correlated) with VivoPower International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VivoPower International has no effect on the direction of Winland Holdings i.e., Winland Holdings and VivoPower International go up and down completely randomly.
Pair Corralation between Winland Holdings and VivoPower International
If you would invest 106.00 in VivoPower International PLC on August 28, 2024 and sell it today you would earn a total of 1.00 from holding VivoPower International PLC or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Winland Holdings vs. VivoPower International PLC
Performance |
| Timeline |
| Winland Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VivoPower International |
Winland Holdings and VivoPower International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winland Holdings and VivoPower International
The main advantage of trading using opposite Winland Holdings and VivoPower International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winland Holdings position performs unexpectedly, VivoPower International 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 VivoPower International will offset losses from the drop in VivoPower International's long position.The idea behind Winland Holdings and VivoPower International PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| VivoPower International vs. Emeren Group | VivoPower International vs. Tigo Energy | VivoPower International vs. Sunrun Inc | VivoPower International vs. Sunnova Energy 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |