Correlation Between Vasta Platform and Graham Holdings

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

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

Diversification Opportunities for Vasta Platform and Graham Holdings

0.08

Correlation Coefficient

Vasta Platform  Graham Holdings

Significant diversification

The 3 months correlation between Vasta and Graham is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of Vasta Platform i.e., Vasta Platform and Graham Holdings go up and down completely randomly.

Pair Corralation between Vasta Platform and Graham Holdings

Given the investment horizon of 90 days Vasta Platform is expected to under-perform the Graham Holdings. In addition to that, Vasta Platform is 1.39 times more volatile than Graham Holdings Co. It trades about -0.04 of its total potential returns per unit of risk. Graham Holdings Co is currently generating about -0.02 per unit of volatility. If you would invest  93,965  in Graham Holdings Co on May 4, 2025 and sell it today you would lose (1,923) from holding Graham Holdings Co or give up 2.05% of portfolio value over 90 days.

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

Vasta Platform  vs.  Graham Holdings Co

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.

Graham Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Graham Holdings Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Graham Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Vasta Platform and Graham Holdings

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

The idea behind Vasta Platform and Graham Holdings Co 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.