Correlation Between Fluent and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Fluent and Victorias Secret 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 Fluent and Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Victorias Secret Co, you can compare the effects of market volatilities on Fluent and Victorias Secret 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 Fluent with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Victorias Secret.
Diversification Opportunities for Fluent and Victorias Secret
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fluent and Victorias is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and Fluent 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 Fluent Inc are associated (or correlated) with Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of Fluent i.e., Fluent and Victorias Secret go up and down completely randomly.
Pair Corralation between Fluent and Victorias Secret
Given the investment horizon of 90 days Fluent Inc is expected to generate 1.03 times more return on investment than Victorias Secret. However, Fluent is 1.03 times more volatile than Victorias Secret Co. It trades about 0.04 of its potential returns per unit of risk. Victorias Secret Co is currently generating about -0.5 per unit of risk. If you would invest 284.00 in Fluent Inc on November 28, 2024 and sell it today you would earn a total of 4.00 from holding Fluent Inc or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fluent Inc vs. Victorias Secret Co
Performance |
| Timeline |
| Fluent Inc |
| Victorias Secret |
Fluent and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Victorias Secret
The main advantage of trading using opposite Fluent and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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