Correlation Between Varex Imaging and LIFWW Old

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

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

Diversification Opportunities for Varex Imaging and LIFWW Old

0.0

Correlation Coefficient

Varex Imaging  LIFWW Old

Pay attention - limited upside

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

Pair Corralation between Varex Imaging and LIFWW Old

If you would invest (100.00) in LIFWW Old on December 27, 2024 and sell it today you would earn a total of  100.00  from holding LIFWW Old 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

Varex Imaging Corp  vs.  LIFWW Old

Varex Imaging Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Varex Imaging Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

LIFWW Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days LIFWW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, LIFWW Old is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Varex Imaging and LIFWW Old

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

The idea behind Varex Imaging Corp and LIFWW Old 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.