Correlation Between VINCI and MITX

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

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

Diversification Opportunities for VINCI and MITX

-0.49

Correlation Coefficient

VINCI  MITX

Very good diversification

The 3 months correlation between VINCI and MITX is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding VINCI and MITX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MITX and VINCI 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 VINCI are associated (or correlated) with MITX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MITX has no effect on the direction of VINCI i.e., VINCI and MITX go up and down completely randomly.

Pair Corralation between VINCI and MITX

Assuming the 90 days trading horizon VINCI is expected to generate 0.23 times more return on investment than MITX. However, VINCI is 4.33 times less risky than MITX. It trades about 0.17 of its potential returns per unit of risk. MITX is currently generating about 0.02 per unit of risk. If you would invest  1,206  in VINCI on April 30, 2025 and sell it today you would earn a total of  266.00  from holding VINCI or generate 22.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

VINCI  vs.  MITX

VINCI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VINCI are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, VINCI exhibited solid returns over the last few months and may actually be approaching a breakup point.

MITX

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MITX are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, MITX may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VINCI and MITX

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

The idea behind VINCI and MITX 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.