Correlation Between Jeffs Brands and Designer Brands
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Designer 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 Jeffs Brands and Designer Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Designer Brands, you can compare the effects of market volatilities on Jeffs Brands and Designer 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 Jeffs Brands with a short position of Designer Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Designer Brands.
Diversification Opportunities for Jeffs Brands and Designer Brands
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeffs and Designer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Designer Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Designer Brands 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 Designer Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Designer Brands has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Designer Brands go up and down completely randomly.
Pair Corralation between Jeffs Brands and Designer Brands
Given the investment horizon of 90 days Jeffs Brands is expected to generate 78.63 times more return on investment than Designer Brands. However, Jeffs Brands is 78.63 times more volatile than Designer Brands. It trades about 0.21 of its potential returns per unit of risk. Designer Brands is currently generating about -0.16 per unit of risk. If you would invest 34.00 in Jeffs Brands on August 26, 2024 and sell it today you would earn a total of 253.00 from holding Jeffs Brands or generate 744.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Designer Brands
Performance |
| Timeline |
| Jeffs Brands |
| Designer Brands |
Jeffs Brands and Designer Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Designer Brands
The main advantage of trading using opposite Jeffs Brands and Designer Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Designer 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 Designer Brands will offset losses from the drop in Designer Brands' long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Designer Brands vs. Wolverine World Wide | Designer Brands vs. Weyco Group | Designer Brands vs. Steven Madden | Designer Brands vs. Rocky Brands |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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