Correlation Between Lulus Fashion and Stitch Fix
Can any of the company-specific risk be diversified away by investing in both Lulus Fashion and Stitch Fix 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 Lulus Fashion and Stitch Fix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lulus Fashion Lounge and Stitch Fix, you can compare the effects of market volatilities on Lulus Fashion and Stitch Fix 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 Lulus Fashion with a short position of Stitch Fix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lulus Fashion and Stitch Fix.
Diversification Opportunities for Lulus Fashion and Stitch Fix
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lulus and Stitch is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lulus Fashion Lounge and Stitch Fix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stitch Fix and Lulus Fashion 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 Lulus Fashion Lounge are associated (or correlated) with Stitch Fix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stitch Fix has no effect on the direction of Lulus Fashion i.e., Lulus Fashion and Stitch Fix go up and down completely randomly.
Pair Corralation between Lulus Fashion and Stitch Fix
Given the investment horizon of 90 days Lulus Fashion Lounge is expected to under-perform the Stitch Fix. In addition to that, Lulus Fashion is 2.85 times more volatile than Stitch Fix. It trades about -0.06 of its total potential returns per unit of risk. Stitch Fix is currently generating about 0.54 per unit of volatility. If you would invest 312.00 in Stitch Fix on August 28, 2024 and sell it today you would earn a total of 141.00 from holding Stitch Fix or generate 45.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lulus Fashion Lounge vs. Stitch Fix
Performance |
| Timeline |
| Lulus Fashion Lounge |
| Stitch Fix |
Lulus Fashion and Stitch Fix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lulus Fashion and Stitch Fix
The main advantage of trading using opposite Lulus Fashion and Stitch Fix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lulus Fashion position performs unexpectedly, Stitch Fix 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 Stitch Fix will offset losses from the drop in Stitch Fix's long position.| Lulus Fashion vs. Citi Trends | Lulus Fashion vs. Tillys Inc | Lulus Fashion vs. Zumiez Inc | Lulus Fashion vs. JJill 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |