Correlation Between ITV Plc and Vivendi SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ITV Plc and Vivendi SA 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 ITV Plc and Vivendi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITV Plc and Vivendi SA PK, you can compare the effects of market volatilities on ITV Plc and Vivendi SA 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 ITV Plc with a short position of Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITV Plc and Vivendi SA.

Diversification Opportunities for ITV Plc and Vivendi SA

-0.91
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ITV and Vivendi is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding ITV Plc and Vivendi SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SA PK and ITV Plc 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 ITV Plc are associated (or correlated) with Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA PK has no effect on the direction of ITV Plc i.e., ITV Plc and Vivendi SA go up and down completely randomly.

Pair Corralation between ITV Plc and Vivendi SA

If you would invest  1,057  in Vivendi SA PK on December 29, 2023 and sell it today you would earn a total of  0.00  from holding Vivendi SA PK or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy4.55%
ValuesDaily Returns

ITV Plc  vs.  Vivendi SA PK

 Performance 
       Timeline  
ITV Plc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days ITV Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Vivendi SA PK 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Vivendi SA PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Vivendi SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ITV Plc and Vivendi SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ITV Plc and Vivendi SA

The main advantage of trading using opposite ITV Plc and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITV Plc position performs unexpectedly, Vivendi SA 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 Vivendi SA will offset losses from the drop in Vivendi SA's long position.
The idea behind ITV Plc and Vivendi SA PK 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.
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing