Correlation Between VictoryShares and FlexShares Real

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

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

Diversification Opportunities for VictoryShares and FlexShares Real

0.17

Correlation Coefficient

VictoryShares  FlexShares Real

Average diversification

The 3 months correlation between VictoryShares and FlexShares is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding VictoryShares and FlexShares Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares Real Assets and VictoryShares 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 VictoryShares are associated (or correlated) with FlexShares Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares Real Assets has no effect on the direction of VictoryShares i.e., VictoryShares and FlexShares Real go up and down completely randomly.

Pair Corralation between VictoryShares and FlexShares Real

If you would invest  3,152  in FlexShares Real Assets on May 2, 2025 and sell it today you would earn a total of  76.00  from holding FlexShares Real Assets or generate 2.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

VictoryShares  vs.  FlexShares Real Assets

VictoryShares

Risk-Adjusted Performance

Very Weak

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

FlexShares Real Assets

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FlexShares Real Assets are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, FlexShares Real is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VictoryShares and FlexShares Real

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

The idea behind VictoryShares and FlexShares Real Assets 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.