Correlation Between Vasta Platform and Dillards

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

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

Diversification Opportunities for Vasta Platform and Dillards

-0.49

Correlation Coefficient

Vasta Platform  Dillards

Very good diversification

The 3 months correlation between Vasta and Dillards is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Dillards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dillards and Vasta Platform 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 Vasta Platform are associated (or correlated) with Dillards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dillards has no effect on the direction of Vasta Platform i.e., Vasta Platform and Dillards go up and down completely randomly.

Pair Corralation between Vasta Platform and Dillards

Given the investment horizon of 90 days Vasta Platform is expected to under-perform the Dillards. But the stock apears to be less risky and, when comparing its historical volatility, Vasta Platform is 1.39 times less risky than Dillards. The stock trades about -0.04 of its potential returns per unit of risk. The Dillards is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  35,340  in Dillards on May 5, 2025 and sell it today you would earn a total of  11,515  from holding Dillards or generate 32.58% return on investment over 90 days.

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

Vasta Platform  vs.  Dillards

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.

Dillards

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dillards are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Dillards unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vasta Platform and Dillards

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

The idea behind Vasta Platform and Dillards 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..