Correlation Between Vuzix Corp and Frequency Electronics
Can any of the company-specific risk be diversified away by investing in both Vuzix Corp and Frequency Electronics 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 Vuzix Corp and Frequency Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vuzix Corp Cmn and Frequency Electronics, you can compare the effects of market volatilities on Vuzix Corp and Frequency Electronics 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 Vuzix Corp with a short position of Frequency Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and Frequency Electronics.
Diversification Opportunities for Vuzix Corp and Frequency Electronics
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vuzix and Frequency is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Frequency Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Electronics and Vuzix Corp 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 Vuzix Corp Cmn are associated (or correlated) with Frequency Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Electronics has no effect on the direction of Vuzix Corp i.e., Vuzix Corp and Frequency Electronics go up and down completely randomly.
Pair Corralation between Vuzix Corp and Frequency Electronics
Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 1.2 times more return on investment than Frequency Electronics. However, Vuzix Corp is 1.2 times more volatile than Frequency Electronics. It trades about 0.06 of its potential returns per unit of risk. Frequency Electronics is currently generating about 0.02 per unit of risk. If you would invest 232.00 in Vuzix Corp Cmn on August 13, 2025 and sell it today you would earn a total of 30.00 from holding Vuzix Corp Cmn or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vuzix Corp Cmn vs. Frequency Electronics
Performance |
| Timeline |
| Vuzix Corp Cmn |
| Frequency Electronics |
Vuzix Corp and Frequency Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vuzix Corp and Frequency Electronics
The main advantage of trading using opposite Vuzix Corp and Frequency Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp position performs unexpectedly, Frequency Electronics 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 Frequency Electronics will offset losses from the drop in Frequency Electronics' long position.| Vuzix Corp vs. GoPro Inc | Vuzix Corp vs. A2Z Smart Technologies | Vuzix Corp vs. SmartRent | Vuzix Corp vs. ALT5 Sigma |
| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Microvision | Frequency Electronics vs. Turtle Beach | Frequency Electronics vs. AudioCodes |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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