Correlation Between Salon City and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Salon City 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 Salon City and Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salon City and Victorias Secret Co, you can compare the effects of market volatilities on Salon City 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 Salon City with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salon City and Victorias Secret.
Diversification Opportunities for Salon City and Victorias Secret
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salon and Victorias is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salon City and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and Salon City 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 Salon City 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 Salon City i.e., Salon City and Victorias Secret go up and down completely randomly.
Pair Corralation between Salon City and Victorias Secret
If you would invest 0.01 in Salon City on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Salon City or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salon City vs. Victorias Secret Co
Performance |
| Timeline |
| Salon City |
| Victorias Secret |
Salon City and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salon City and Victorias Secret
The main advantage of trading using opposite Salon City and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salon City 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.| Salon City vs. BBB Foods | Salon City vs. Ingredion Incorporated | Salon City vs. Oatly Group AB | Salon City vs. Boston Beer |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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