RDI vs VSTM: Correlation
How closely do Reading International Inc - Class A Non-voting (RDI) and Verastem, Inc. (VSTM) trade together? Their weekly returns over three years give a correlation of 0.34, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RDI and VSTM?
On 3 years of weekly data the RDI/VSTM correlation comes out at 0.34, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.07 versus 0.34 over 3 years. The 5-year figure is 0.28, and annualized covariance runs at 1556.3 %².
VSTM is one of the assets that tracks RDI most closely: it ranks #2 out of the 10 assets we track against RDI. Their recent paths diverged sharply: over the last 12 months RDI outperformed by 57.0 percentage points (+36.4% for RDI against -20.6% for VSTM). Risk is not evenly split, since VSTM carries 2.3 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
RDI vs VSTM: side by side
| RDI (Reading International Inc - Class A Non-voting) | VSTM (Verastem, Inc.) | |
|---|---|---|
| 1-year return | +36.4% | -20.6% |
| 5-year return | -57.8% | -77.0% |
| Volatility (ann.) | 44.2% | 102.2% |
| Beta vs S&P 500 | 0.26 | 1.38 |
| Max drawdown (3Y) | -58.5% | -84.4% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RDI | VSTM |
|---|---|---|
| 2022 | -31.4% | -80.5% |
| 2023 | -31.0% | +69.6% |
| 2024 | -30.9% | -36.5% |
| 2025 | -20.5% | +49.3% |
| 2026 | +100.0% | -4.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RDI and VSTM good diversifiers for each other?
Reasonably. At 0.34, RDI and VSTM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RDI and VSTM?
Using weekly returns as of 2026-08-27: 0.34 over 3 years, with 0.07 over the last year and 0.28 over 5 years.
Is VSTM a good diversifier for RDI?
Reasonably. At 0.34, RDI and VSTM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.34 mean?
On the −1 to +1 scale, 0.34 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: RDI correlations · VSTM correlations
