Volkswagen Correlations

VOW Stock   2,120  31.00  1.48%   
The current 90-days correlation between Volkswagen AG and Cez AS is 0.31 (i.e., Weak diversification). The correlation of Volkswagen is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Volkswagen Correlation With Market

Very good diversification

The correlation between Volkswagen AG and DJI is -0.31 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to Volkswagen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Volkswagen when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Volkswagen - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Volkswagen AG to buy it.

Moving together with Volkswagen Stock

  0.79COLOS Coloseum HoldingPairCorr

Moving against Volkswagen Stock

  0.86KOFOL Kofola CeskoSlovenskoPairCorr
  0.76FILL Fillamentum asPairCorr
  0.7CEZ Cez ASPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
FILLCEZ
KOFOLCEZ
FILLKOFOL
COLOSKLIKY
KLIKYPRIUA
COLOSPRIUA
  
High negative correlations   
FILLCOLOS
COLOSCEZ
COLOSKOFOL
KLIKYKOFOL
FILLKLIKY
PRIUAKOFOL

Risk-Adjusted Indicators

There is a big difference between Volkswagen Stock performing well and Volkswagen Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Volkswagen's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Volkswagen Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Volkswagen stock to make a market-neutral strategy. Peer analysis of Volkswagen could also be used in its relative valuation, which is a method of valuing Volkswagen by comparing valuation metrics with similar companies.
 Risk & Return  Correlation