Correlation Between Forge Global and Vacasa
Can any of the company-specific risk be diversified away by investing in both Forge Global and Vacasa 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 Forge Global and Vacasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forge Global Holdings and Vacasa Inc, you can compare the effects of market volatilities on Forge Global and Vacasa 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 Forge Global with a short position of Vacasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forge Global and Vacasa.
Diversification Opportunities for Forge Global and Vacasa
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Forge and Vacasa is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Forge Global Holdings and Vacasa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vacasa Inc and Forge Global 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 Forge Global Holdings are associated (or correlated) with Vacasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vacasa Inc has no effect on the direction of Forge Global i.e., Forge Global and Vacasa go up and down completely randomly.
Pair Corralation between Forge Global and Vacasa
Given the investment horizon of 90 days Forge Global Holdings is expected to under-perform the Vacasa. But the stock apears to be less risky and, when comparing its historical volatility, Forge Global Holdings is 1.17 times less risky than Vacasa. The stock trades about -0.08 of its potential returns per unit of risk. The Vacasa Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Vacasa Inc on November 2, 2024 and sell it today you would earn a total of 180.00 from holding Vacasa Inc or generate 55.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forge Global Holdings vs. Vacasa Inc
Performance |
| Timeline |
| Forge Global Holdings |
| Vacasa Inc |
Forge Global and Vacasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forge Global and Vacasa
The main advantage of trading using opposite Forge Global and Vacasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forge Global position performs unexpectedly, Vacasa 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 Vacasa will offset losses from the drop in Vacasa's long position.| Forge Global vs. Clearwater Analytics Holdings | Forge Global vs. Expensify | Forge Global vs. CS Disco LLC | Forge Global vs. Amplitude |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |