Correlation Between Bath Body and Westwing Comrcio
Can any of the company-specific risk be diversified away by investing in both Bath Body and Westwing Comrcio 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 Bath Body and Westwing Comrcio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bath Body Works and Westwing Comrcio Varejista, you can compare the effects of market volatilities on Bath Body and Westwing Comrcio 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 Bath Body with a short position of Westwing Comrcio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bath Body and Westwing Comrcio.
Diversification Opportunities for Bath Body and Westwing Comrcio
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bath and Westwing is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bath Body Works and Westwing Comrcio Varejista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwing Comrcio Var and Bath Body 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 Bath Body Works are associated (or correlated) with Westwing Comrcio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwing Comrcio Var has no effect on the direction of Bath Body i.e., Bath Body and Westwing Comrcio go up and down completely randomly.
Pair Corralation between Bath Body and Westwing Comrcio
Assuming the 90 days trading horizon Bath Body Works is expected to generate 1.15 times more return on investment than Westwing Comrcio. However, Bath Body is 1.15 times more volatile than Westwing Comrcio Varejista. It trades about 0.04 of its potential returns per unit of risk. Westwing Comrcio Varejista is currently generating about -0.03 per unit of risk. If you would invest 5,170 in Bath Body Works on September 12, 2024 and sell it today you would earn a total of 729.00 from holding Bath Body Works or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 41.64% |
| Values | Daily Returns |
Bath Body Works vs. Westwing Comrcio Varejista
Performance |
| Timeline |
| Bath Body Works |
| Westwing Comrcio Var |
Bath Body and Westwing Comrcio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bath Body and Westwing Comrcio
The main advantage of trading using opposite Bath Body and Westwing Comrcio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bath Body position performs unexpectedly, Westwing Comrcio 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 Westwing Comrcio will offset losses from the drop in Westwing Comrcio's long position.| Bath Body vs. Teladoc Health | Bath Body vs. United Rentals | Bath Body vs. Charter Communications | Bath Body vs. GP Investments |
| Westwing Comrcio vs. Mobly SA | Westwing Comrcio vs. Enjoei SA | Westwing Comrcio vs. Bemobi Mobile Tech | Westwing Comrcio vs. MPM Corpreos SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |