Correlation Between VIDAVO SA and Mytilineos

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

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

Diversification Opportunities for VIDAVO SA and Mytilineos

-0.32

Correlation Coefficient

VIDAVO SA  Mytilineos

Very good diversification

The 3 months correlation between VIDAVO and Mytilineos is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding VIDAVO SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and VIDAVO SA 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 VIDAVO SA are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of VIDAVO SA i.e., VIDAVO SA and Mytilineos go up and down completely randomly.

Pair Corralation between VIDAVO SA and Mytilineos

Assuming the 90 days trading horizon VIDAVO SA is expected to under-perform the Mytilineos. But the stock apears to be less risky and, when comparing its historical volatility, VIDAVO SA is 1.72 times less risky than Mytilineos. The stock trades about -0.03 of its potential returns per unit of risk. The Mytilineos SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,242  in Mytilineos SA on April 22, 2025 and sell it today you would earn a total of  374.00  from holding Mytilineos SA or generate 8.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

VIDAVO SA  vs.  Mytilineos SA

VIDAVO SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIDAVO SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, VIDAVO SA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Mytilineos SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mytilineos SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Mytilineos may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VIDAVO SA and Mytilineos

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

The idea behind VIDAVO SA and Mytilineos SA 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.