Correlation Between Secoo Holding and Global E
Can any of the company-specific risk be diversified away by investing in both Secoo Holding and Global E 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 Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Global E Online, you can compare the effects of market volatilities on Secoo Holding and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Global E.
Diversification Opportunities for Secoo Holding and Global E
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Secoo and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Secoo Holding i.e., Secoo Holding and Global E go up and down completely randomly.
Pair Corralation between Secoo Holding and Global E
If you would invest 3,122 in Global E Online on August 29, 2024 and sell it today you would earn a total of 2,044 from holding Global E Online or generate 65.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Secoo Holding vs. Global E Online
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global E Online |
Secoo Holding and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Global E
The main advantage of trading using opposite Secoo Holding and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E'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 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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