Correlation Between VOXX International and VOXX INTL

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

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

Diversification Opportunities for VOXX International and VOXX INTL

0.84

Correlation Coefficient

VOXX International  VOXX INTL

Very poor diversification

The 3 months correlation between VOXX and VOXX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and VOXX INTL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOXX INTL A and VOXX International 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 VOXX International are associated (or correlated) with VOXX INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOXX INTL A has no effect on the direction of VOXX International i.e., VOXX International and VOXX INTL go up and down completely randomly.

Pair Corralation between VOXX International and VOXX INTL

Assuming the 90 days horizon VOXX International is expected to generate 0.89 times more return on investment than VOXX INTL. However, VOXX International is 1.12 times less risky than VOXX INTL. It trades about -0.19 of its potential returns per unit of risk. VOXX INTL A is currently generating about -0.18 per unit of risk. If you would invest  730.00  in VOXX International on October 23, 2024 and sell it today you would lose (20.00) from holding VOXX International or give up 2.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.12%
Values	Daily Returns

VOXX International  vs.  VOXX INTL A

VOXX International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VOXX International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, VOXX International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

VOXX INTL A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VOXX INTL A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, VOXX INTL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VOXX International and VOXX INTL

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

The idea behind VOXX International and VOXX INTL A 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 Commodity Directory module to find actively traded commodities issued by global exchanges.