Correlation Between Secoo Holding and Newegg Commerce
Can any of the company-specific risk be diversified away by investing in both Secoo Holding and Newegg Commerce 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 Newegg Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Newegg Commerce, you can compare the effects of market volatilities on Secoo Holding and Newegg Commerce 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 Newegg Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Newegg Commerce.
Diversification Opportunities for Secoo Holding and Newegg Commerce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Secoo and Newegg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Newegg Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newegg Commerce 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 Newegg Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newegg Commerce has no effect on the direction of Secoo Holding i.e., Secoo Holding and Newegg Commerce go up and down completely randomly.
Pair Corralation between Secoo Holding and Newegg Commerce
If you would invest 45.00 in Newegg Commerce on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Newegg Commerce or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Secoo Holding vs. Newegg Commerce
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Newegg Commerce |
Secoo Holding and Newegg Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Newegg Commerce
The main advantage of trading using opposite Secoo Holding and Newegg Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding position performs unexpectedly, Newegg Commerce 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 Newegg Commerce will offset losses from the drop in Newegg Commerce'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 |
| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |