Correlation Between CCC SA and Stitch Fix
Can any of the company-specific risk be diversified away by investing in both CCC SA and Stitch Fix 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 CCC SA and Stitch Fix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCC SA and Stitch Fix, you can compare the effects of market volatilities on CCC SA and Stitch Fix 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 CCC SA with a short position of Stitch Fix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCC SA and Stitch Fix.
Diversification Opportunities for CCC SA and Stitch Fix
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CCC and Stitch is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CCC SA and Stitch Fix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stitch Fix and CCC 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 CCC SA are associated (or correlated) with Stitch Fix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stitch Fix has no effect on the direction of CCC SA i.e., CCC SA and Stitch Fix go up and down completely randomly.
Pair Corralation between CCC SA and Stitch Fix
Assuming the 90 days horizon CCC SA is expected to generate 0.59 times more return on investment than Stitch Fix. However, CCC SA is 1.71 times less risky than Stitch Fix. It trades about 0.12 of its potential returns per unit of risk. Stitch Fix is currently generating about 0.05 per unit of risk. If you would invest 820.00 in CCC SA on September 12, 2024 and sell it today you would earn a total of 3,594 from holding CCC SA or generate 438.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCC SA vs. Stitch Fix
Performance |
| Timeline |
| CCC SA |
| Stitch Fix |
CCC SA and Stitch Fix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCC SA and Stitch Fix
The main advantage of trading using opposite CCC SA and Stitch Fix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCC SA position performs unexpectedly, Stitch Fix 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 Stitch Fix will offset losses from the drop in Stitch Fix's long position.| CCC SA vs. Virtus Investment Partners | CCC SA vs. PKSHA TECHNOLOGY INC | CCC SA vs. Check Point Software | CCC SA vs. Microchip Technology Incorporated |
| Stitch Fix vs. FAST RETAIL ADR | Stitch Fix vs. CCC SA | Stitch Fix vs. AOYAMA TRADING | Stitch Fix vs. Superior Plus Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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