Correlation Between Vision Marine and Harley Davidson

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

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

Diversification Opportunities for Vision Marine and Harley Davidson

0.66

Correlation Coefficient

Vision Marine  Harley Davidson

Poor diversification

The 3 months correlation between Vision and Harley is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Vision Marine Technologies and Harley Davidson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harley Davidson and Vision Marine 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 Vision Marine Technologies are associated (or correlated) with Harley Davidson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harley Davidson has no effect on the direction of Vision Marine i.e., Vision Marine and Harley Davidson go up and down completely randomly.

Pair Corralation between Vision Marine and Harley Davidson

Given the investment horizon of 90 days Vision Marine Technologies is expected to under-perform the Harley Davidson. In addition to that, Vision Marine is 3.27 times more volatile than Harley Davidson. It trades about -0.13 of its total potential returns per unit of risk. Harley Davidson is currently generating about -0.04 per unit of volatility. If you would invest  4,571  in Harley Davidson on November 20, 2024 and sell it today you would lose (1,996) from holding Harley Davidson or give up 43.67% of portfolio value over 90 days.

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

Vision Marine Technologies  vs.  Harley Davidson

Vision Marine Techno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vision Marine Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Harley Davidson

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harley Davidson has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Vision Marine and Harley Davidson

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

The idea behind Vision Marine Technologies and Harley Davidson 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.