Correlation Between Artemis Strategic and Secoo Holding
Can any of the company-specific risk be diversified away by investing in both Artemis Strategic and Secoo Holding 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 Artemis Strategic and Secoo Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Strategic Investment and Secoo Holding, you can compare the effects of market volatilities on Artemis Strategic and Secoo Holding 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 Artemis Strategic with a short position of Secoo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and Secoo Holding.
Diversification Opportunities for Artemis Strategic and Secoo Holding
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artemis and Secoo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment and Secoo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secoo Holding and Artemis Strategic 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 Artemis Strategic Investment are associated (or correlated) with Secoo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secoo Holding has no effect on the direction of Artemis Strategic i.e., Artemis Strategic and Secoo Holding go up and down completely randomly.
Pair Corralation between Artemis Strategic and Secoo Holding
Given the investment horizon of 90 days Artemis Strategic is expected to generate 16.99 times less return on investment than Secoo Holding. But when comparing it to its historical volatility, Artemis Strategic Investment is 112.39 times less risky than Secoo Holding. It trades about 0.22 of its potential returns per unit of risk. Secoo Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 180.00 in Secoo Holding on September 2, 2024 and sell it today you would lose (97.00) from holding Secoo Holding or give up 53.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artemis Strategic Investment vs. Secoo Holding
Performance |
| Timeline |
| Artemis Strategic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Artemis Strategic and Secoo Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Strategic and Secoo Holding
The main advantage of trading using opposite Artemis Strategic and Secoo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Strategic position performs unexpectedly, Secoo Holding 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 Secoo Holding will offset losses from the drop in Secoo Holding's long position.The idea behind Artemis Strategic Investment and Secoo Holding 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.| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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