Correlation Between Oriental Culture and Secoo Holding
Can any of the company-specific risk be diversified away by investing in both Oriental Culture 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 Oriental Culture and Secoo Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and Secoo Holding, you can compare the effects of market volatilities on Oriental Culture 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 Oriental Culture with a short position of Secoo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and Secoo Holding.
Diversification Opportunities for Oriental Culture and Secoo Holding
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and Secoo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and Secoo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secoo Holding and Oriental Culture 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 Oriental Culture Holding 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 Oriental Culture i.e., Oriental Culture and Secoo Holding go up and down completely randomly.
Pair Corralation between Oriental Culture and Secoo Holding
Considering the 90-day investment horizon Oriental Culture is expected to generate 8.57 times less return on investment than Secoo Holding. But when comparing it to its historical volatility, Oriental Culture Holding is 2.56 times less risky than Secoo Holding. It trades about 0.01 of its potential returns per unit of risk. Secoo Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Secoo Holding on August 27, 2024 and sell it today you would lose (95.00) from holding Secoo Holding or give up 53.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.85% |
| Values | Daily Returns |
Oriental Culture Holding vs. Secoo Holding
Performance |
| Timeline |
| Oriental Culture Holding |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oriental Culture and Secoo Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and Secoo Holding
The main advantage of trading using opposite Oriental Culture and Secoo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture 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.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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