Correlation Between Dividend and Stack Capital

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

By analyzing existing cross correlation between Dividend 15 Split and Stack Capital Group, you can compare the effects of market volatilities on Dividend and Stack Capital 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 Dividend with a short position of Stack Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend and Stack Capital.

Diversification Opportunities for Dividend and Stack Capital

-0.2

Correlation Coefficient

Dividend  Stack Capital

Good diversification

The 3 months correlation between Dividend and Stack is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dividend 15 Split and Stack Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stack Capital Group and Dividend 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 Dividend 15 Split are associated (or correlated) with Stack Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stack Capital Group has no effect on the direction of Dividend i.e., Dividend and Stack Capital go up and down completely randomly.

Pair Corralation between Dividend and Stack Capital

Assuming the 90 days horizon Dividend 15 Split is expected to generate 0.29 times more return on investment than Stack Capital. However, Dividend 15 Split is 3.48 times less risky than Stack Capital. It trades about 0.34 of its potential returns per unit of risk. Stack Capital Group is currently generating about -0.04 per unit of risk. If you would invest  618.00  in Dividend 15 Split on August 20, 2025 and sell it today you would earn a total of  83.00  from holding Dividend 15 Split or generate 13.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Dividend 15 Split  vs.  Stack Capital Group

Dividend 15 Split

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dividend displayed solid returns over the last few months and may actually be approaching a breakup point.

Stack Capital Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Stack Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Stack Capital is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Dividend and Stack Capital

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

The idea behind Dividend 15 Split and Stack Capital Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.