Correlation Between Vacasa and Matterport

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

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

Diversification Opportunities for Vacasa and Matterport

0.44

Correlation Coefficient

Vacasa  Matterport

Very weak diversification

The 3 months correlation between Vacasa and Matterport is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Vacasa Inc and Matterport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matterport and Vacasa 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 Vacasa Inc are associated (or correlated) with Matterport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matterport has no effect on the direction of Vacasa i.e., Vacasa and Matterport go up and down completely randomly.

Pair Corralation between Vacasa and Matterport

Given the investment horizon of 90 days Vacasa is expected to generate 1.82 times less return on investment than Matterport. In addition to that, Vacasa is 1.03 times more volatile than Matterport. It trades about 0.14 of its total potential returns per unit of risk. Matterport is currently generating about 0.26 per unit of volatility. If you would invest  472.00  in Matterport on December 30, 2024 and sell it today you would earn a total of  66.00  from holding Matterport or generate 13.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	67.74%
Values	Daily Returns

Vacasa Inc  vs.  Matterport

Vacasa Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vacasa Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Vacasa may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Matterport

Risk-Adjusted Performance

Solid

Over the last 90 days Matterport has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively abnormal basic indicators, Matterport reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vacasa and Matterport

The main advantage of trading using opposite Vacasa and Matterport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vacasa position performs unexpectedly, Matterport 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 Matterport will offset losses from the drop in Matterport's long position.

The idea behind Vacasa Inc and Matterport 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.