Correlation Between Daily Journal and Vasta Platform

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

By analyzing existing cross correlation between Daily Journal Corp and Vasta Platform, you can compare the effects of market volatilities on Daily Journal and Vasta Platform 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 Daily Journal with a short position of Vasta Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daily Journal and Vasta Platform.

Diversification Opportunities for Daily Journal and Vasta Platform

-0.43

Correlation Coefficient

Daily Journal  Vasta Platform

Very good diversification

The 3 months correlation between Daily and Vasta is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Daily Journal Corp and Vasta Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vasta Platform and Daily Journal 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 Daily Journal Corp are associated (or correlated) with Vasta Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vasta Platform has no effect on the direction of Daily Journal i.e., Daily Journal and Vasta Platform go up and down completely randomly.

Pair Corralation between Daily Journal and Vasta Platform

Given the investment horizon of 90 days Daily Journal Corp is expected to generate 1.18 times more return on investment than Vasta Platform. However, Daily Journal is 1.18 times more volatile than Vasta Platform. It trades about 0.02 of its potential returns per unit of risk. Vasta Platform is currently generating about 0.0 per unit of risk. If you would invest  38,233  in Daily Journal Corp on May 6, 2025 and sell it today you would earn a total of  242.00  from holding Daily Journal Corp or generate 0.63% return on investment over 90 days.

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

Daily Journal Corp  vs.  Vasta Platform

Daily Journal Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Daily Journal Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Daily Journal is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Vasta Platform

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vasta Platform has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Vasta Platform is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Daily Journal and Vasta Platform

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

The idea behind Daily Journal Corp and Vasta Platform 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.