Correlation Between Moncler SpA and VF

Can any of the company-specific risk be diversified away by investing in both Moncler SpA 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 Moncler SpA and VF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moncler SpA and VF Corporation, you can compare the effects of market volatilities on Moncler SpA 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 Moncler SpA with a short position of VF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moncler SpA and VF.

Diversification Opportunities for Moncler SpA and VF

0.09

Correlation Coefficient

Moncler SpA  VF

Significant diversification

The 3 months correlation between Moncler and VF is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Moncler SpA and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation and Moncler SpA 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 Moncler SpA 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 Moncler SpA i.e., Moncler SpA and VF go up and down completely randomly.

Pair Corralation between Moncler SpA and VF

Assuming the 90 days horizon Moncler SpA is expected to generate 0.59 times more return on investment than VF. However, Moncler SpA is 1.7 times less risky than VF. It trades about 0.15 of its potential returns per unit of risk. VF Corporation is currently generating about -0.14 per unit of risk. If you would invest  5,539  in Moncler SpA on December 19, 2024 and sell it today you would earn a total of  1,033  from holding Moncler SpA or generate 18.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Moncler SpA  vs.  VF Corp.

Moncler SpA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moncler SpA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Moncler SpA reported solid returns over the last few months and may actually be approaching a breakup point.

VF Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days VF Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Moncler SpA and VF

The main advantage of trading using opposite Moncler SpA and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moncler SpA 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.

The idea behind Moncler SpA and VF Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.