Correlation Between VF and 50249AAA1

Can any of the company-specific risk be diversified away by investing in both VF and 50249AAA1 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 VF and 50249AAA1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VF Corporation and LYB INTERNATIONAL FINANCE, you can compare the effects of market volatilities on VF and 50249AAA1 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 VF with a short position of 50249AAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of VF and 50249AAA1.

Diversification Opportunities for VF and 50249AAA1

0.0

Correlation Coefficient

VF  50249AAA1

Pay attention - limited upside

The 3 months correlation between VF and 50249AAA1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VF Corp. and LYB INTERNATIONAL FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB INTERNATIONAL FINANCE and VF 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 VF Corporation are associated (or correlated) with 50249AAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB INTERNATIONAL FINANCE has no effect on the direction of VF i.e., VF and 50249AAA1 go up and down completely randomly.

Pair Corralation between VF and 50249AAA1

If you would invest (100.00) in LYB INTERNATIONAL FINANCE on December 22, 2024 and sell it today you would earn a total of  100.00  from holding LYB INTERNATIONAL FINANCE or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VF Corp.  vs.  LYB INTERNATIONAL FINANCE

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.

LYB INTERNATIONAL FINANCE

Risk-Adjusted Performance

Very Weak

Over the last 90 days LYB INTERNATIONAL FINANCE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 50249AAA1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VF and 50249AAA1

The main advantage of trading using opposite VF and 50249AAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VF position performs unexpectedly, 50249AAA1 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 50249AAA1 will offset losses from the drop in 50249AAA1's long position.

The idea behind VF Corporation and LYB INTERNATIONAL FINANCE 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.