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
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stitch and FAST is 0.11. 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
If you would invest (100.00) in Stitch Fix on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Stitch Fix or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Stitch Fix vs. FAST RETAIL ADR
Performance |
| Timeline |
| Stitch Fix |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| 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. Japan Medical Dynamic | Stitch Fix vs. Compugroup Medical SE | Stitch Fix vs. PULSION Medical Systems | Stitch Fix vs. CITY OFFICE REIT |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |