Correlation Between Bank Central and Via Renewables

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

By analyzing existing cross correlation between Bank Central Asia and Via Renewables, you can compare the effects of market volatilities on Bank Central and Via Renewables 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 Bank Central with a short position of Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Via Renewables.

Diversification Opportunities for Bank Central and Via Renewables

-0.71

Correlation Coefficient

Bank Central  Via Renewables

Pay attention - limited upside

The 3 months correlation between Bank and Via is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables and Bank Central 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 Bank Central Asia are associated (or correlated) with Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Bank Central i.e., Bank Central and Via Renewables go up and down completely randomly.

Pair Corralation between Bank Central and Via Renewables

Assuming the 90 days horizon Bank Central Asia is expected to under-perform the Via Renewables. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 1.07 times less risky than Via Renewables. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Via Renewables is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,258  in Via Renewables on July 9, 2025 and sell it today you would earn a total of  1,282  from holding Via Renewables or generate 101.91% return on investment over 90 days.

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

Bank Central Asia  vs.  Via Renewables

Bank Central Asia

Risk-Adjusted Performance

Weakest

Over the last 90 days Bank Central Asia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Via Renewables

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Via Renewables is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Bank Central and Via Renewables

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

The idea behind Bank Central Asia and Via Renewables 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.