Correlation Between Lands End and TheRealReal
Can any of the company-specific risk be diversified away by investing in both Lands End and TheRealReal 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 Lands End and TheRealReal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lands End and TheRealReal, you can compare the effects of market volatilities on Lands End and TheRealReal 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 Lands End with a short position of TheRealReal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lands End and TheRealReal.
Diversification Opportunities for Lands End and TheRealReal
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lands and TheRealReal is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and TheRealReal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TheRealReal and Lands End 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 Lands End are associated (or correlated) with TheRealReal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TheRealReal has no effect on the direction of Lands End i.e., Lands End and TheRealReal go up and down completely randomly.
Pair Corralation between Lands End and TheRealReal
Allowing for the 90-day total investment horizon Lands End is expected to generate 25.71 times less return on investment than TheRealReal. But when comparing it to its historical volatility, Lands End is 3.1 times less risky than TheRealReal. It trades about 0.0 of its potential returns per unit of risk. TheRealReal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 939.00 in TheRealReal on October 21, 2024 and sell it today you would earn a total of 13.00 from holding TheRealReal or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lands End vs. TheRealReal
Performance |
| Timeline |
| Lands End |
| TheRealReal |
Lands End and TheRealReal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lands End and TheRealReal
The main advantage of trading using opposite Lands End and TheRealReal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, TheRealReal 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 TheRealReal will offset losses from the drop in TheRealReal's long position.| Lands End vs. Tillys Inc | Lands End vs. Zumiez Inc | Lands End vs. Citi Trends | Lands End vs. Cato Corporation |
| TheRealReal vs. Capri Holdings | TheRealReal vs. Movado Group | TheRealReal vs. Tapestry | TheRealReal vs. Brilliant Earth Group |
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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