Correlation Between Vuzix Corp and Sadot

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

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

Diversification Opportunities for Vuzix Corp and Sadot

0.28

Correlation Coefficient

Vuzix Corp  Sadot

Modest diversification

The 3 months correlation between Vuzix and Sadot is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group and Vuzix Corp 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 Vuzix Corp Cmn are associated (or correlated) with Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Vuzix Corp i.e., Vuzix Corp and Sadot go up and down completely randomly.

Pair Corralation between Vuzix Corp and Sadot

Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 0.74 times more return on investment than Sadot. However, Vuzix Corp Cmn is 1.36 times less risky than Sadot. It trades about 0.06 of its potential returns per unit of risk. Sadot Group is currently generating about -0.06 per unit of risk. If you would invest  180.00  in Vuzix Corp Cmn on May 3, 2025 and sell it today you would earn a total of  21.00  from holding Vuzix Corp Cmn or generate 11.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Vuzix Corp Cmn  vs.  Sadot Group

Vuzix Corp Cmn

Risk-Adjusted Performance

Insignificant

Over the last 90 days Vuzix Corp Cmn has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly weak basic indicators, Vuzix Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Sadot Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Vuzix Corp and Sadot

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

The idea behind Vuzix Corp Cmn and Sadot Group 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.

Check out your portfolio center.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.