Correlation Between Postd Merchant and Vortex Brands

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

By analyzing existing cross correlation between Postd Merchant Banque and Vortex Brands Co, you can compare the effects of market volatilities on Postd Merchant and Vortex Brands 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 Postd Merchant with a short position of Vortex Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postd Merchant and Vortex Brands.

Diversification Opportunities for Postd Merchant and Vortex Brands

0.0

Correlation Coefficient

Postd Merchant  Vortex Brands

Pay attention - limited upside

The 3 months correlation between Postd and Vortex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Postd Merchant Banque and Vortex Brands Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vortex Brands and Postd Merchant 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 Postd Merchant Banque are associated (or correlated) with Vortex Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vortex Brands has no effect on the direction of Postd Merchant i.e., Postd Merchant and Vortex Brands go up and down completely randomly.

Pair Corralation between Postd Merchant and Vortex Brands

If you would invest  0.02  in Vortex Brands Co on July 26, 2025 and sell it today you would lose (0.01) from holding Vortex Brands Co or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Postd Merchant Banque  vs.  Vortex Brands Co

Postd Merchant Banque

Risk-Adjusted Performance

Weakest

Over the last 90 days Postd Merchant Banque has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Postd Merchant is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vortex Brands

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vortex Brands Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Vortex Brands sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Postd Merchant and Vortex Brands

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

The idea behind Postd Merchant Banque and Vortex Brands Co 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.