Correlation Between J Long and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both J Long and Victorias Secret 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 J Long and Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Long Group Limited and Victorias Secret Co, you can compare the effects of market volatilities on J Long and Victorias Secret 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 J Long with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Long and Victorias Secret.
Diversification Opportunities for J Long and Victorias Secret
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between J Long and Victorias is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and J Long 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 J Long Group Limited are associated (or correlated) with Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of J Long i.e., J Long and Victorias Secret go up and down completely randomly.
Pair Corralation between J Long and Victorias Secret
Allowing for the 90-day total investment horizon J Long Group Limited is expected to generate 2.91 times more return on investment than Victorias Secret. However, J Long is 2.91 times more volatile than Victorias Secret Co. It trades about 0.07 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.0 per unit of risk. If you would invest 435.00 in J Long Group Limited on November 8, 2024 and sell it today you would earn a total of 49.00 from holding J Long Group Limited or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Long Group Limited vs. Victorias Secret Co
Performance |
| Timeline |
| J Long Group |
| Victorias Secret |
J Long and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Long and Victorias Secret
The main advantage of trading using opposite J Long and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Long position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| J Long vs. NetEase | J Long vs. Emerson Radio | J Long vs. Everspin Technologies | J Long vs. Franklin Wireless Corp |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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