Correlation Between Vista Outdoor and Nautilus
Can any of the company-specific risk be diversified away by investing in both Vista Outdoor and Nautilus 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 Vista Outdoor and Nautilus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Outdoor and Nautilus Group, you can compare the effects of market volatilities on Vista Outdoor and Nautilus 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 Vista Outdoor with a short position of Nautilus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Outdoor and Nautilus.
Diversification Opportunities for Vista Outdoor and Nautilus
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vista and Nautilus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vista Outdoor and Nautilus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nautilus Group and Vista Outdoor 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 Vista Outdoor are associated (or correlated) with Nautilus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nautilus Group has no effect on the direction of Vista Outdoor i.e., Vista Outdoor and Nautilus go up and down completely randomly.
Pair Corralation between Vista Outdoor and Nautilus
If you would invest 4,401 in Vista Outdoor on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Vista Outdoor or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Vista Outdoor vs. Nautilus Group
Performance |
| Timeline |
| Vista Outdoor |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vista Outdoor and Nautilus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Outdoor and Nautilus
The main advantage of trading using opposite Vista Outdoor and Nautilus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Outdoor position performs unexpectedly, Nautilus 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 Nautilus will offset losses from the drop in Nautilus' long position.| Vista Outdoor vs. Clarus Corp | Vista Outdoor vs. Johnson Outdoors | Vista Outdoor vs. Escalade Incorporated | Vista Outdoor vs. JAKKS Pacific |
| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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