Correlation Between Aecom Technology and VINCI SA

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

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

Diversification Opportunities for Aecom Technology and VINCI SA

0.4

Correlation Coefficient

Aecom Technology  VINCI SA

Very weak diversification

The 3 months correlation between Aecom and VINCI is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aecom Technology and VINCI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINCI SA and Aecom Technology 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 Aecom Technology are associated (or correlated) with VINCI SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINCI SA has no effect on the direction of Aecom Technology i.e., Aecom Technology and VINCI SA go up and down completely randomly.

Pair Corralation between Aecom Technology and VINCI SA

Considering the 90-day investment horizon Aecom Technology is expected to generate 0.92 times more return on investment than VINCI SA. However, Aecom Technology is 1.09 times less risky than VINCI SA. It trades about 0.17 of its potential returns per unit of risk. VINCI SA is currently generating about 0.03 per unit of risk. If you would invest  10,609  in Aecom Technology on May 11, 2025 and sell it today you would earn a total of  1,312  from holding Aecom Technology or generate 12.37% return on investment over 90 days.

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

Aecom Technology  vs.  VINCI SA

Aecom Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aecom Technology are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Aecom Technology may actually be approaching a critical reversion point that can send shares even higher in September 2025.

VINCI SA

Risk-Adjusted Performance

Weak

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

Pair Trading with Aecom Technology and VINCI SA

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

The idea behind Aecom Technology and VINCI SA 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.