Correlation Between SFS REAL and VFD GROUP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SFS REAL 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 SFS REAL and VFD GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFS REAL ESTATE and VFD GROUP, you can compare the effects of market volatilities on SFS REAL 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 SFS REAL with a short position of VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and VFD GROUP.

Diversification Opportunities for SFS REAL and VFD GROUP

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between SFS and VFD is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP and SFS REAL 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 SFS REAL ESTATE 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 SFS REAL i.e., SFS REAL and VFD GROUP go up and down completely randomly.

Pair Corralation between SFS REAL and VFD GROUP

Assuming the 90 days trading horizon SFS REAL ESTATE is expected to generate 0.16 times more return on investment than VFD GROUP. However, SFS REAL ESTATE is 6.22 times less risky than VFD GROUP. It trades about 0.19 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.15 per unit of risk. If you would invest  20,600  in SFS REAL ESTATE on April 19, 2025 and sell it today you would earn a total of  4,325  from holding SFS REAL ESTATE or generate 21.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SFS REAL ESTATE  vs.  VFD GROUP

 Performance 
       Timeline  
SFS REAL ESTATE 

Risk-Adjusted Performance

Good

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

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days VFD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SFS REAL and VFD GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SFS REAL and VFD GROUP

The main advantage of trading using opposite SFS REAL and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFS REAL 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.
SFS REAL vs. AIICO INSURANCE PLC
SFS REAL vs. CORONATION INSURANCE PLC
SFS REAL vs. NIGERIAN BREWERIES PLC
SFS REAL vs. FIDELITY BANK PLC
The idea behind SFS REAL ESTATE 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.
VFD GROUP vs. GUINEA INSURANCE PLC
VFD GROUP vs. ALUMINIUM EXTRUSION IND
VFD GROUP vs. VITAFOAM NIGERIA PLC
VFD GROUP vs. JAPAUL OIL MARITIME
Check out your portfolio center.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2025 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY