Correlation Between Poste Italiane and Vail Resorts

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

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

Diversification Opportunities for Poste Italiane and Vail Resorts

0.0

Correlation Coefficient

Poste Italiane  Vail Resorts

Pay attention - limited upside

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

Pair Corralation between Poste Italiane and Vail Resorts

If you would invest  12,126  in Vail Resorts on April 24, 2025 and sell it today you would earn a total of  1,774  from holding Vail Resorts or generate 14.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Poste Italiane SpA  vs.  Vail Resorts

Poste Italiane SpA

Risk-Adjusted Performance

Good

Over the last 90 days Poste Italiane SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Poste Italiane is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Vail Resorts

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vail Resorts are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vail Resorts reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Poste Italiane and Vail Resorts

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

The idea behind Poste Italiane SpA and Vail Resorts 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.