Correlation Between 1 800 and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both 1 800 and Jeffs Brands 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 1 800 and Jeffs Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1 800 FLOWERSCOM and Jeffs Brands, you can compare the effects of market volatilities on 1 800 and Jeffs Brands 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 1 800 with a short position of Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 800 and Jeffs Brands.
Diversification Opportunities for 1 800 and Jeffs Brands
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FLWS and Jeffs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding 1 800 FLOWERSCOM and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and 1 800 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 1 800 FLOWERSCOM are associated (or correlated) with Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of 1 800 i.e., 1 800 and Jeffs Brands go up and down completely randomly.
Pair Corralation between 1 800 and Jeffs Brands
Given the investment horizon of 90 days 1 800 FLOWERSCOM is expected to generate 0.64 times more return on investment than Jeffs Brands. However, 1 800 FLOWERSCOM is 1.55 times less risky than Jeffs Brands. It trades about -0.29 of its potential returns per unit of risk. Jeffs Brands is currently generating about -0.34 per unit of risk. If you would invest 810.00 in 1 800 FLOWERSCOM on December 10, 2024 and sell it today you would lose (153.00) from holding 1 800 FLOWERSCOM or give up 18.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1 800 FLOWERSCOM vs. Jeffs Brands
Performance |
| Timeline |
| 1 800 FLOWERSCOM |
| Jeffs Brands |
1 800 and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1 800 and Jeffs Brands
The main advantage of trading using opposite 1 800 and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 800 position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.The idea behind 1 800 FLOWERSCOM and Jeffs Brands 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.| Jeffs Brands vs. Hour Loop | ||
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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 Stocks Directory module to find actively traded stocks across global markets.
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