Correlation Between Vertiv Holdings and Appfolio

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

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

Diversification Opportunities for Vertiv Holdings and Appfolio

-0.74

Correlation Coefficient

Vertiv Holdings  Appfolio

Pay attention - limited upside

The 3 months correlation between Vertiv and Appfolio is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vertiv Holdings Co and Appfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appfolio and Vertiv Holdings 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 Vertiv Holdings Co are associated (or correlated) with Appfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appfolio has no effect on the direction of Vertiv Holdings i.e., Vertiv Holdings and Appfolio go up and down completely randomly.

Pair Corralation between Vertiv Holdings and Appfolio

Considering the 90-day investment horizon Vertiv Holdings Co is expected to generate 1.16 times more return on investment than Appfolio. However, Vertiv Holdings is 1.16 times more volatile than Appfolio. It trades about 0.14 of its potential returns per unit of risk. Appfolio is currently generating about 0.03 per unit of risk. If you would invest  11,274  in Vertiv Holdings Co on September 2, 2025 and sell it today you would earn a total of  6,699  from holding Vertiv Holdings Co or generate 59.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Vertiv Holdings Co  vs.  Appfolio

Vertiv Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vertiv Holdings Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Vertiv Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Appfolio

Risk-Adjusted Performance

Weakest

Over the last 90 days Appfolio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Vertiv Holdings and Appfolio

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

The idea behind Vertiv Holdings Co and Appfolio 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.