Correlation Between Veritiv Cor and Matthews International

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

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

Diversification Opportunities for Veritiv Cor and Matthews International

0.0

Correlation Coefficient

Veritiv Cor  Matthews International

Pay attention - limited upside

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

Pair Corralation between Veritiv Cor and Matthews International

If you would invest (100.00) in Veritiv Cor on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Veritiv Cor 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

Veritiv Cor  vs.  Matthews International

Veritiv Cor

Risk-Adjusted Performance

Very Weak

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

Matthews International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Matthews International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Veritiv Cor and Matthews International

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

The idea behind Veritiv Cor and Matthews International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.