Correlation Between Vuzix Corp and Casio Computer

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

By analyzing existing cross correlation between Vuzix Corp Cmn and Casio Computer Co, you can compare the effects of market volatilities on Vuzix Corp and Casio Computer 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 Vuzix Corp with a short position of Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and Casio Computer.

Diversification Opportunities for Vuzix Corp and Casio Computer

-0.29

Correlation Coefficient

Vuzix Corp  Casio Computer

Very good diversification

The 3 months correlation between Vuzix and Casio is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Casio Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer and Vuzix Corp 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 Vuzix Corp Cmn are associated (or correlated) with Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer has no effect on the direction of Vuzix Corp i.e., Vuzix Corp and Casio Computer go up and down completely randomly.

Pair Corralation between Vuzix Corp and Casio Computer

Given the investment horizon of 90 days Vuzix Corp Cmn is expected to under-perform the Casio Computer. In addition to that, Vuzix Corp is 3.51 times more volatile than Casio Computer Co. It trades about -0.11 of its total potential returns per unit of risk. Casio Computer Co is currently generating about 0.02 per unit of volatility. If you would invest  8,343  in Casio Computer Co on December 28, 2024 and sell it today you would earn a total of  57.00  from holding Casio Computer Co or generate 0.68% return on investment over 90 days.

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

Vuzix Corp Cmn  vs.  Casio Computer Co

Vuzix Corp Cmn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vuzix Corp Cmn has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Casio Computer

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Casio Computer Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Casio Computer is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vuzix Corp and Casio Computer

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

The idea behind Vuzix Corp Cmn and Casio Computer Co 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.