Correlation Between Bliss GVS and Virginia Bank

Can any of the company-specific risk be diversified away by investing in both Bliss GVS and Virginia Bank 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 Bliss GVS and Virginia Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bliss GVS Pharma and Virginia Bank Bankshares, you can compare the effects of market volatilities on Bliss GVS and Virginia Bank 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 Bliss GVS with a short position of Virginia Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bliss GVS and Virginia Bank.

Diversification Opportunities for Bliss GVS and Virginia Bank

0.0

Correlation Coefficient

Bliss GVS  Virginia Bank

Pay attention - limited upside

The 3 months correlation between Bliss and Virginia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bliss GVS Pharma and Virginia Bank Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virginia Bank Bankshares and Bliss GVS 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 Bliss GVS Pharma are associated (or correlated) with Virginia Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virginia Bank Bankshares has no effect on the direction of Bliss GVS i.e., Bliss GVS and Virginia Bank go up and down completely randomly.

Pair Corralation between Bliss GVS and Virginia Bank

If you would invest  11,815  in Bliss GVS Pharma on February 3, 2024 and sell it today you would earn a total of  1,125  from holding Bliss GVS Pharma or generate 9.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bliss GVS Pharma  vs.  Virginia Bank Bankshares

Bliss GVS Pharma

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bliss GVS Pharma are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Bliss GVS may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Virginia Bank Bankshares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Virginia Bank Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Virginia Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bliss GVS and Virginia Bank

The main advantage of trading using opposite Bliss GVS and Virginia Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bliss GVS position performs unexpectedly, Virginia Bank 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 Virginia Bank will offset losses from the drop in Virginia Bank's long position.

The idea behind Bliss GVS Pharma and Virginia Bank Bankshares 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.