Correlation Between Secoo Holding and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Secoo Holding and Jeffs Brands 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 Jeffs Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Jeffs Brands, you can compare the effects of market volatilities on Secoo Holding and Jeffs Brands 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 Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Jeffs Brands.
Diversification Opportunities for Secoo Holding and Jeffs Brands
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Secoo and Jeffs is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands 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 Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Secoo Holding i.e., Secoo Holding and Jeffs Brands go up and down completely randomly.
Pair Corralation between Secoo Holding and Jeffs Brands
If you would invest 343.00 in Jeffs Brands on August 27, 2024 and sell it today you would lose (56.00) from holding Jeffs Brands or give up 16.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Secoo Holding vs. Jeffs Brands
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jeffs Brands |
Secoo Holding and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Jeffs Brands
The main advantage of trading using opposite Secoo Holding and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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