Correlation Between Secoo Holding and Farfetch
Can any of the company-specific risk be diversified away by investing in both Secoo Holding and Farfetch 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 Secoo Holding and Farfetch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Farfetch Ltd Class, you can compare the effects of market volatilities on Secoo Holding and Farfetch 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 Secoo Holding with a short position of Farfetch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Farfetch.
Diversification Opportunities for Secoo Holding and Farfetch
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Secoo and Farfetch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Farfetch Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farfetch Class and Secoo Holding 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 Secoo Holding are associated (or correlated) with Farfetch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farfetch Class has no effect on the direction of Secoo Holding i.e., Secoo Holding and Farfetch go up and down completely randomly.
Pair Corralation between Secoo Holding and Farfetch
If you would invest (100.00) in Farfetch Ltd Class on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Farfetch Ltd Class or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Secoo Holding vs. Farfetch Ltd Class
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Farfetch Class |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Secoo Holding and Farfetch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Farfetch
The main advantage of trading using opposite Secoo Holding and Farfetch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding position performs unexpectedly, Farfetch 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 Farfetch will offset losses from the drop in Farfetch's long position.| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
| Farfetch vs. JD Inc Adr | Farfetch vs. Alibaba Group Holding | Farfetch vs. Sea | Farfetch vs. Vipshop Holdings Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |