Correlation Between Jeffs Brands and Xcel Brands
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Xcel 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 Xcel 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 Xcel Brands, you can compare the effects of market volatilities on Jeffs Brands and Xcel 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 Xcel Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Xcel Brands.
Diversification Opportunities for Jeffs Brands and Xcel Brands
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeffs and Xcel is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Xcel Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xcel 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 Xcel Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xcel Brands has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Xcel Brands go up and down completely randomly.
Pair Corralation between Jeffs Brands and Xcel Brands
Given the investment horizon of 90 days Jeffs Brands is expected to generate 12.16 times more return on investment than Xcel Brands. However, Jeffs Brands is 12.16 times more volatile than Xcel Brands. It trades about 0.05 of its potential returns per unit of risk. Xcel Brands 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Xcel Brands
Performance |
| Timeline |
| Jeffs Brands |
| Xcel Brands |
Jeffs Brands and Xcel Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Xcel Brands
The main advantage of trading using opposite Jeffs Brands and Xcel Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Xcel 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 Xcel Brands will offset losses from the drop in Xcel Brands' long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Xcel Brands vs. Under Armour C | Xcel Brands vs. Oxford Industries | Xcel Brands vs. Vince Holding Corp | Xcel Brands vs. Ermenegildo Zegna NV |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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