Correlation Between Jeffs Brands and Secoo Holding

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Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Secoo Holding 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 Secoo Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Secoo Holding, you can compare the effects of market volatilities on Jeffs Brands and Secoo Holding 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 Secoo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Secoo Holding.

Diversification Opportunities for Jeffs Brands and Secoo Holding

JeffsSecooDiversified AwayJeffsSecooDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Jeffs and Secoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Secoo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secoo Holding 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 Secoo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secoo Holding has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Secoo Holding go up and down completely randomly.

Pair Corralation between Jeffs Brands and Secoo Holding

If you would invest (100.00) in Secoo Holding on November 25, 2024 and sell it today you would earn a total of  100.00  from holding Secoo Holding or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Jeffs Brands  vs.  Secoo Holding

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 2004006008001,000
JavaScript chart by amCharts 3.21.15JFBR SECO
       Timeline  
Jeffs Brands 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jeffs Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb22.533.54
Secoo Holding 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Secoo Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Secoo Holding is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Jeffs Brands and Secoo Holding Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-372.42-278.92-185.43-91.941.6599.15198.29297.44396.59 0.0000050.0000100.0000150.0000200.000025
JavaScript chart by amCharts 3.21.15JFBR SECO
       Returns  

Pair Trading with Jeffs Brands and Secoo Holding

The main advantage of trading using opposite Jeffs Brands and Secoo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Secoo Holding 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 Secoo Holding will offset losses from the drop in Secoo Holding's long position.
The idea behind Jeffs Brands and Secoo Holding 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.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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