Correlation Between Virco Manufacturing and Solid Power
Can any of the company-specific risk be diversified away by investing in both Virco Manufacturing and Solid Power 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 Virco Manufacturing and Solid Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virco Manufacturing and Solid Power, you can compare the effects of market volatilities on Virco Manufacturing and Solid Power 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 Virco Manufacturing with a short position of Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virco Manufacturing and Solid Power.
Diversification Opportunities for Virco Manufacturing and Solid Power
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virco and Solid is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power and Virco Manufacturing 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 Virco Manufacturing are associated (or correlated) with Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Virco Manufacturing i.e., Virco Manufacturing and Solid Power go up and down completely randomly.
Pair Corralation between Virco Manufacturing and Solid Power
Given the investment horizon of 90 days Virco Manufacturing is expected to under-perform the Solid Power. But the stock apears to be less risky and, when comparing its historical volatility, Virco Manufacturing is 2.48 times less risky than Solid Power. The stock trades about -0.1 of its potential returns per unit of risk. The Solid Power is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 113.00 in Solid Power on April 20, 2025 and sell it today you would earn a total of 264.00 from holding Solid Power or generate 233.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virco Manufacturing vs. Solid Power
Performance |
| Timeline |
| Virco Manufacturing |
| Solid Power |
Virco Manufacturing and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virco Manufacturing and Solid Power
The main advantage of trading using opposite Virco Manufacturing and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing position performs unexpectedly, Solid Power 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 Solid Power will offset losses from the drop in Solid Power's long position.| Virco Manufacturing vs. Flexsteel Industries | Virco Manufacturing vs. Hamilton Beach Brands | Virco Manufacturing vs. Natuzzi SpA | Virco Manufacturing vs. Crown Crafts |
| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |