Correlation Between Sable Offshore and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Sable Offshore 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 Sable Offshore and Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Offshore Corp and Victorias Secret Co, you can compare the effects of market volatilities on Sable Offshore 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 Sable Offshore with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Victorias Secret.
Diversification Opportunities for Sable Offshore and Victorias Secret
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sable and Victorias is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and Sable Offshore 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 Sable Offshore Corp 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 Sable Offshore i.e., Sable Offshore and Victorias Secret go up and down completely randomly.
Pair Corralation between Sable Offshore and Victorias Secret
Considering the 90-day investment horizon Sable Offshore is expected to generate 4.29 times less return on investment than Victorias Secret. In addition to that, Sable Offshore is 1.27 times more volatile than Victorias Secret Co. It trades about 0.09 of its total potential returns per unit of risk. Victorias Secret Co is currently generating about 0.47 per unit of volatility. If you would invest 3,026 in Victorias Secret Co on September 1, 2024 and sell it today you would earn a total of 858.00 from holding Victorias Secret Co or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sable Offshore Corp vs. Victorias Secret Co
Performance |
| Timeline |
| Sable Offshore Corp |
| Victorias Secret |
Sable Offshore and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Victorias Secret
The main advantage of trading using opposite Sable Offshore and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore 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.| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
| Victorias Secret vs. Capri Holdings | Victorias Secret vs. Movado Group | Victorias Secret vs. Tapestry | Victorias Secret vs. Brilliant Earth Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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