Correlation Between Ipa Investments and VTC Telecommunicatio

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

By analyzing existing cross correlation between Ipa Investments Group and VTC Telecommunications JSC, you can compare the effects of market volatilities on Ipa Investments and VTC Telecommunicatio 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 Ipa Investments with a short position of VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipa Investments and VTC Telecommunicatio.

Diversification Opportunities for Ipa Investments and VTC Telecommunicatio

-0.34

Correlation Coefficient

Ipa Investments  VTC Telecommunicatio

Very good diversification

The 3 months correlation between Ipa and VTC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ipa Investments Group and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications and Ipa Investments 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 Ipa Investments Group are associated (or correlated) with VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Ipa Investments i.e., Ipa Investments and VTC Telecommunicatio go up and down completely randomly.

Pair Corralation between Ipa Investments and VTC Telecommunicatio

Assuming the 90 days trading horizon Ipa Investments Group is expected to generate 1.48 times more return on investment than VTC Telecommunicatio. However, Ipa Investments is 1.48 times more volatile than VTC Telecommunications JSC. It trades about 0.17 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.07 per unit of risk. If you would invest  1,390,000  in Ipa Investments Group on July 3, 2025 and sell it today you would earn a total of  670,000  from holding Ipa Investments Group or generate 48.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.26%
Values	Daily Returns

Ipa Investments Group  vs.  VTC Telecommunications JSC

Ipa Investments Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ipa Investments Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ipa Investments displayed solid returns over the last few months and may actually be approaching a breakup point.

VTC Telecommunications

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in VTC Telecommunications JSC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, VTC Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Ipa Investments and VTC Telecommunicatio

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

The idea behind Ipa Investments Group and VTC Telecommunications JSC 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.