Correlation Between VTEX and Asana

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

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

Diversification Opportunities for VTEX and Asana

-0.71

Correlation Coefficient

VTEX  Asana

Pay attention - limited upside

The 3 months correlation between VTEX and Asana is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding VTEX and Asana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asana Inc and VTEX 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 VTEX are associated (or correlated) with Asana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asana Inc has no effect on the direction of VTEX i.e., VTEX and Asana go up and down completely randomly.

Pair Corralation between VTEX and Asana

Given the investment horizon of 90 days VTEX is expected to generate 0.5 times more return on investment than Asana. However, VTEX is 2.0 times less risky than Asana. It trades about 0.18 of its potential returns per unit of risk. Asana Inc is currently generating about -0.16 per unit of risk. If you would invest  568.00  in VTEX on October 21, 2024 and sell it today you would earn a total of  32.00  from holding VTEX or generate 5.63% return on investment over 90 days.

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

VTEX  vs.  Asana Inc

VTEX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VTEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Asana Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Asana Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Asana displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VTEX and Asana

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

The idea behind VTEX and Asana Inc 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..