Correlation Between Quanex Building and Vestis

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

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

Diversification Opportunities for Quanex Building and Vestis

0.13

Correlation Coefficient

Quanex Building  Vestis

Average diversification

The 3 months correlation between Quanex and Vestis is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis and Quanex Building 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 Quanex Building Products are associated (or correlated) with Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Quanex Building i.e., Quanex Building and Vestis go up and down completely randomly.

Pair Corralation between Quanex Building and Vestis

Allowing for the 90-day total investment horizon Quanex Building Products is expected to generate 0.77 times more return on investment than Vestis. However, Quanex Building Products is 1.3 times less risky than Vestis. It trades about -0.03 of its potential returns per unit of risk. Vestis is currently generating about -0.03 per unit of risk. If you would invest  2,832  in Quanex Building Products on August 2, 2025 and sell it today you would lose (1,411) from holding Quanex Building Products or give up 49.82% of portfolio value over 90 days.

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

Quanex Building Products  vs.  Vestis

Quanex Building Products

Risk-Adjusted Performance

Weakest

Over the last 90 days Quanex Building Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vestis

Risk-Adjusted Performance

Weakest

Over the last 90 days Vestis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Quanex Building and Vestis

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

The idea behind Quanex Building Products and Vestis 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.