Correlation Between Elutia and VF
Can any of the company-specific risk be diversified away by investing in both Elutia and VF 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 Elutia and VF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elutia Inc and VF Corporation, you can compare the effects of market volatilities on Elutia and VF 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 Elutia with a short position of VF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elutia and VF.
Diversification Opportunities for Elutia and VF
Very good diversification
The 3 months correlation between Elutia and VF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Elutia Inc and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation and Elutia 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 Elutia Inc are associated (or correlated) with VF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corporation has no effect on the direction of Elutia i.e., Elutia and VF go up and down completely randomly.
Pair Corralation between Elutia and VF
Given the investment horizon of 90 days Elutia Inc is expected to under-perform the VF. In addition to that, Elutia is 2.32 times more volatile than VF Corporation. It trades about -0.27 of its total potential returns per unit of risk. VF Corporation is currently generating about 0.46 per unit of volatility. If you would invest 2,141 in VF Corporation on October 31, 2024 and sell it today you would earn a total of 415.00 from holding VF Corporation or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elutia Inc vs. VF Corp.
Performance |
| Timeline |
| Elutia Inc |
| VF Corporation |
Elutia and VF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elutia and VF
The main advantage of trading using opposite Elutia and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elutia position performs unexpectedly, VF 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 VF will offset losses from the drop in VF's long position.| Elutia vs. JetBlue Airways Corp | Elutia vs. International Consolidated Airlines | Elutia vs. Multi Ways Holdings | Elutia vs. Air Lease |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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