Correlation Between MeaTech 3D and Vitality Products

Can any of the company-specific risk be diversified away by investing in both MeaTech 3D and Vitality Products 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 MeaTech 3D and Vitality Products into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MeaTech 3D and Vitality Products, you can compare the effects of market volatilities on MeaTech 3D and Vitality Products 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 MeaTech 3D with a short position of Vitality Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeaTech 3D and Vitality Products.

Diversification Opportunities for MeaTech 3D and Vitality Products

0.68

Correlation Coefficient

MeaTech 3D  Vitality Products

Poor diversification

The 3 months correlation between MeaTech and Vitality is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding MeaTech 3D and Vitality Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitality Products and MeaTech 3D 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 MeaTech 3D are associated (or correlated) with Vitality Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitality Products has no effect on the direction of MeaTech 3D i.e., MeaTech 3D and Vitality Products go up and down completely randomly.

Pair Corralation between MeaTech 3D and Vitality Products

Assuming the 90 days horizon MeaTech 3D is expected to generate 1.07 times less return on investment than Vitality Products. In addition to that, MeaTech 3D is 1.32 times more volatile than Vitality Products. It trades about 0.09 of its total potential returns per unit of risk. Vitality Products is currently generating about 0.12 per unit of volatility. If you would invest  2.00  in Vitality Products on August 14, 2025 and sell it today you would earn a total of  0.50  from holding Vitality Products or generate 25.0% return on investment over 90 days.

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

MeaTech 3D  vs.  Vitality Products

MeaTech 3D

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MeaTech 3D are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, MeaTech 3D reported solid returns over the last few months and may actually be approaching a breakup point.

Vitality Products

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vitality Products are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Vitality Products reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MeaTech 3D and Vitality Products

The main advantage of trading using opposite MeaTech 3D and Vitality Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeaTech 3D position performs unexpectedly, Vitality Products 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 Vitality Products will offset losses from the drop in Vitality Products' long position.

The idea behind MeaTech 3D and Vitality Products 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 CEOs Directory module to screen CEOs from public companies around the world.