Correlation Between Virco Manufacturing and Wex
Can any of the company-specific risk be diversified away by investing in both Virco Manufacturing and Wex 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 Virco Manufacturing and Wex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virco Manufacturing and Wex Inc, you can compare the effects of market volatilities on Virco Manufacturing and Wex 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 Virco Manufacturing with a short position of Wex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virco Manufacturing and Wex.
Diversification Opportunities for Virco Manufacturing and Wex
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virco and Wex is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and Wex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wex Inc and Virco Manufacturing 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 Virco Manufacturing are associated (or correlated) with Wex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wex Inc has no effect on the direction of Virco Manufacturing i.e., Virco Manufacturing and Wex go up and down completely randomly.
Pair Corralation between Virco Manufacturing and Wex
Given the investment horizon of 90 days Virco Manufacturing is expected to generate 1.8 times more return on investment than Wex. However, Virco Manufacturing is 1.8 times more volatile than Wex Inc. It trades about 0.22 of its potential returns per unit of risk. Wex Inc is currently generating about 0.12 per unit of risk. If you would invest 1,412 in Virco Manufacturing on August 28, 2024 and sell it today you would earn a total of 246.00 from holding Virco Manufacturing or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virco Manufacturing vs. Wex Inc
Performance |
| Timeline |
| Virco Manufacturing |
| Wex Inc |
Virco Manufacturing and Wex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virco Manufacturing and Wex
The main advantage of trading using opposite Virco Manufacturing and Wex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing position performs unexpectedly, Wex 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 Wex will offset losses from the drop in Wex's long position.| Virco Manufacturing vs. Bassett Furniture Industries | Virco Manufacturing vs. Hooker Furniture | Virco Manufacturing vs. Natuzzi SpA | Virco Manufacturing vs. Flexsteel Industries |
| Wex vs. Oneconnect Financial Technology | Wex vs. Global Business Travel | Wex vs. Alight Inc | Wex vs. CS Disco LLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |