Correlation Between Wealthsimple Shariah and VFD GROUP

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

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

Diversification Opportunities for Wealthsimple Shariah and VFD GROUP

0.0

Correlation Coefficient

Wealthsimple Shariah  VFD GROUP

Pay attention - limited upside

The 3 months correlation between Wealthsimple and VFD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP and Wealthsimple Shariah 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 Wealthsimple Shariah World are associated (or correlated) with VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and VFD GROUP go up and down completely randomly.

Pair Corralation between Wealthsimple Shariah and VFD GROUP

If you would invest  3,192  in Wealthsimple Shariah World on August 17, 2025 and sell it today you would earn a total of  42.00  from holding Wealthsimple Shariah World or generate 1.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Wealthsimple Shariah World  vs.  VFD GROUP

Wealthsimple Shariah

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wealthsimple Shariah World are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Wealthsimple Shariah is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

VFD GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days VFD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VFD GROUP is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Wealthsimple Shariah and VFD GROUP

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

The idea behind Wealthsimple Shariah World and VFD GROUP 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.