Correlation Between Stitch Fix and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Stitch Fix and FAST RETAIL 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 Stitch Fix and FAST RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stitch Fix and FAST RETAIL ADR, you can compare the effects of market volatilities on Stitch Fix and FAST RETAIL 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 Stitch Fix with a short position of FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stitch Fix and FAST RETAIL.
Diversification Opportunities for Stitch Fix and FAST RETAIL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stitch and FAST is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stitch Fix and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR and Stitch Fix 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 Stitch Fix are associated (or correlated) with FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Stitch Fix i.e., Stitch Fix and FAST RETAIL go up and down completely randomly.
Pair Corralation between Stitch Fix and FAST RETAIL
Assuming the 90 days horizon Stitch Fix is expected to generate 2.18 times more return on investment than FAST RETAIL. However, Stitch Fix is 2.18 times more volatile than FAST RETAIL ADR. It trades about 0.23 of its potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.4 per unit of risk. If you would invest 369.00 in Stitch Fix on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Stitch Fix or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stitch Fix vs. FAST RETAIL ADR
Performance |
| Timeline |
| Stitch Fix |
| FAST RETAIL ADR |
Stitch Fix and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stitch Fix and FAST RETAIL
The main advantage of trading using opposite Stitch Fix and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stitch Fix position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Stitch Fix vs. FAST RETAIL ADR | Stitch Fix vs. CCC SA | Stitch Fix vs. AOYAMA TRADING | Stitch Fix vs. Superior Plus Corp |
| FAST RETAIL vs. CCC SA | FAST RETAIL vs. AOYAMA TRADING | FAST RETAIL vs. Superior Plus Corp | FAST RETAIL vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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