Correlation Between Applied Finance and Vy(r) Blackrock

Can any of the company-specific risk be diversified away by investing in both Applied Finance and Vy(r) Blackrock 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 Applied Finance and Vy(r) Blackrock into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Applied Finance Explorer and Vy Blackrock Inflation, you can compare the effects of market volatilities on Applied Finance and Vy(r) Blackrock 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 Applied Finance with a short position of Vy(r) Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Vy(r) Blackrock.

Diversification Opportunities for Applied Finance and Vy(r) Blackrock

0.87

Correlation Coefficient

Applied Finance  Vy(r) Blackrock

Very poor diversification

The 3 months correlation between Applied and Vy(r) is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Vy Blackrock Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Blackrock Inflation and Applied Finance 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 Applied Finance Explorer are associated (or correlated) with Vy(r) Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Blackrock Inflation has no effect on the direction of Applied Finance i.e., Applied Finance and Vy(r) Blackrock go up and down completely randomly.

Pair Corralation between Applied Finance and Vy(r) Blackrock

Assuming the 90 days horizon Applied Finance Explorer is expected to generate 4.45 times more return on investment than Vy(r) Blackrock. However, Applied Finance is 4.45 times more volatile than Vy Blackrock Inflation. It trades about 0.12 of its potential returns per unit of risk. Vy Blackrock Inflation is currently generating about 0.18 per unit of risk. If you would invest  2,206  in Applied Finance Explorer on July 6, 2025 and sell it today you would earn a total of  180.00  from holding Applied Finance Explorer or generate 8.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Applied Finance Explorer  vs.  Vy Blackrock Inflation

Applied Finance Explorer

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Finance Explorer are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Applied Finance may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Vy Blackrock Inflation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Blackrock Inflation are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vy(r) Blackrock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Applied Finance and Vy(r) Blackrock

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

The idea behind Applied Finance Explorer and Vy Blackrock Inflation 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.