Correlation Between VTEX and Clear Secure

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

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

Diversification Opportunities for VTEX and Clear Secure

-0.47

Correlation Coefficient

VTEX  Clear Secure

Very good diversification

The 3 months correlation between VTEX and Clear is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding VTEX and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and VTEX 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 VTEX are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of VTEX i.e., VTEX and Clear Secure go up and down completely randomly.

Pair Corralation between VTEX and Clear Secure

Given the investment horizon of 90 days VTEX is expected to generate 0.77 times more return on investment than Clear Secure. However, VTEX is 1.3 times less risky than Clear Secure. It trades about 0.45 of its potential returns per unit of risk. Clear Secure is currently generating about -0.1 per unit of risk. If you would invest  475.00  in VTEX on February 9, 2025 and sell it today you would earn a total of  119.00  from holding VTEX or generate 25.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

VTEX  vs.  Clear Secure

VTEX

Risk-Adjusted Performance

Very Weak

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

Clear Secure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Secure are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Clear Secure may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with VTEX and Clear Secure

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

The idea behind VTEX and Clear Secure 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.