Correlation Between Alight and Vimeo

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

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

Diversification Opportunities for Alight and Vimeo

-0.4

Correlation Coefficient

Alight  Vimeo

Very good diversification

The 3 months correlation between Alight and Vimeo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alight Inc and Vimeo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vimeo Inc and Alight 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 Alight Inc are associated (or correlated) with Vimeo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vimeo Inc has no effect on the direction of Alight i.e., Alight and Vimeo go up and down completely randomly.

Pair Corralation between Alight and Vimeo

Given the investment horizon of 90 days Alight Inc is expected to under-perform the Vimeo. In addition to that, Alight is 38.24 times more volatile than Vimeo Inc. It trades about -0.08 of its total potential returns per unit of risk. Vimeo Inc is currently generating about 0.1 per unit of volatility. If you would invest  784.00  in Vimeo Inc on September 12, 2025 and sell it today you would earn a total of  1.00  from holding Vimeo Inc or generate 0.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	63.64%
Values	Daily Returns

Alight Inc  vs.  Vimeo Inc

Alight Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Alight Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Vimeo Inc

Risk-Adjusted Performance

Good

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

Pair Trading with Alight and Vimeo

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

The idea behind Alight Inc and Vimeo Inc 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.