Correlation Between VR Factory and Noble Financials

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

By analyzing existing cross correlation between VR Factory Games and Noble Financials SA, you can compare the effects of market volatilities on VR Factory and Noble Financials 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 VR Factory with a short position of Noble Financials. Check out your portfolio center. Please also check ongoing floating volatility patterns of VR Factory and Noble Financials.

Diversification Opportunities for VR Factory and Noble Financials

-0.03

Correlation Coefficient

VR Factory  Noble Financials

Good diversification

The 3 months correlation between VRF and Noble is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding VR Factory Games and Noble Financials SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble Financials and VR Factory 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 VR Factory Games are associated (or correlated) with Noble Financials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble Financials has no effect on the direction of VR Factory i.e., VR Factory and Noble Financials go up and down completely randomly.

Pair Corralation between VR Factory and Noble Financials

Assuming the 90 days trading horizon VR Factory is expected to generate 1.88 times less return on investment than Noble Financials. In addition to that, VR Factory is 1.42 times more volatile than Noble Financials SA. It trades about 0.01 of its total potential returns per unit of risk. Noble Financials SA is currently generating about 0.03 per unit of volatility. If you would invest  7,100  in Noble Financials SA on April 25, 2025 and sell it today you would earn a total of  280.00  from holding Noble Financials SA or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

VR Factory Games  vs.  Noble Financials SA

VR Factory Games

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VR Factory Games are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, VR Factory is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Noble Financials

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Noble Financials SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Noble Financials may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VR Factory and Noble Financials

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

The idea behind VR Factory Games and Noble Financials SA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.