Correlation Between Vision Marine and Under Armour

Can any of the company-specific risk be diversified away by investing in both Vision Marine and Under Armour 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 Under Armour 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 Under Armour C, you can compare the effects of market volatilities on Vision Marine and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vision Marine and Under Armour.

Diversification Opportunities for Vision Marine and Under Armour

-0.41

Correlation Coefficient

Vision Marine  Under Armour

Very good diversification

The 3 months correlation between Vision and Under is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Vision Marine Technologies and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Vision Marine i.e., Vision Marine and Under Armour go up and down completely randomly.

Pair Corralation between Vision Marine and Under Armour

Given the investment horizon of 90 days Vision Marine Technologies is expected to under-perform the Under Armour. In addition to that, Vision Marine is 2.03 times more volatile than Under Armour C. It trades about -0.39 of its total potential returns per unit of risk. Under Armour C is currently generating about -0.22 per unit of volatility. If you would invest  891.00  in Under Armour C on September 24, 2024 and sell it today you would lose (113.00) from holding Under Armour C or give up 12.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vision Marine Technologies  vs.  Under Armour C

Vision Marine Techno

Risk-Adjusted Performance

0 of 100

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 uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Under Armour C

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Under Armour C are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Under Armour may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Vision Marine and Under Armour

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

The idea behind Vision Marine Technologies and Under Armour C 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.