Correlation Between Vestis and Pony AI
Can any of the company-specific risk be diversified away by investing in both Vestis and Pony AI 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 Vestis and Pony AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and Pony AI American, you can compare the effects of market volatilities on Vestis and Pony AI 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 Vestis with a short position of Pony AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Pony AI.
Diversification Opportunities for Vestis and Pony AI
Average diversification
The 3 months correlation between Vestis and Pony is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and Pony AI American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pony AI American and Vestis 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 Vestis are associated (or correlated) with Pony AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pony AI American has no effect on the direction of Vestis i.e., Vestis and Pony AI go up and down completely randomly.
Pair Corralation between Vestis and Pony AI
Given the investment horizon of 90 days Vestis is expected to generate 22.91 times less return on investment than Pony AI. But when comparing it to its historical volatility, Vestis is 1.54 times less risky than Pony AI. It trades about 0.01 of its potential returns per unit of risk. Pony AI American is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Pony AI American on September 19, 2024 and sell it today you would earn a total of 73.00 from holding Pony AI American or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.84% |
| Values | Daily Returns |
Vestis vs. Pony AI American
Performance |
| Timeline |
| Vestis |
| Pony AI American |
Vestis and Pony AI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and Pony AI
The main advantage of trading using opposite Vestis and Pony AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis position performs unexpectedly, Pony AI 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 Pony AI will offset losses from the drop in Pony AI's long position.| Vestis vs. McGrath RentCorp | Vestis vs. Custom Truck One | Vestis vs. Alta Equipment Group | Vestis vs. PROG Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |