Correlation Between Jeffs Brands and Birks
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Birks 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 Jeffs Brands and Birks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Birks Group, you can compare the effects of market volatilities on Jeffs Brands and Birks 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 Jeffs Brands with a short position of Birks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Birks.
Diversification Opportunities for Jeffs Brands and Birks
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeffs and Birks is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Birks Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birks Group and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Birks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birks Group has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Birks go up and down completely randomly.
Pair Corralation between Jeffs Brands and Birks
Given the investment horizon of 90 days Jeffs Brands is expected to generate 15.29 times more return on investment than Birks. However, Jeffs Brands is 15.29 times more volatile than Birks Group. It trades about 0.05 of its potential returns per unit of risk. Birks Group is currently generating about -0.04 per unit of risk. If you would invest 371.00 in Jeffs Brands on September 12, 2024 and sell it today you would lose (105.00) from holding Jeffs Brands or give up 28.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Birks Group
Performance |
| Timeline |
| Jeffs Brands |
| Birks Group |
Jeffs Brands and Birks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Birks
The main advantage of trading using opposite Jeffs Brands and Birks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Birks 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 Birks will offset losses from the drop in Birks' long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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