Correlation Between GENERAL and Victorias Secret
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By analyzing existing cross correlation between GENERAL ELEC CAP and Victorias Secret Co, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Victorias Secret.
Diversification Opportunities for GENERAL and Victorias Secret
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GENERAL and Victorias is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and GENERAL 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 GENERAL ELEC CAP 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 GENERAL i.e., GENERAL and Victorias Secret go up and down completely randomly.
Pair Corralation between GENERAL and Victorias Secret
Assuming the 90 days trading horizon GENERAL is expected to generate 40.48 times less return on investment than Victorias Secret. But when comparing it to its historical volatility, GENERAL ELEC CAP is 3.83 times less risky than Victorias Secret. It trades about 0.03 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,342 in Victorias Secret Co on September 2, 2024 and sell it today you would earn a total of 1,542 from holding Victorias Secret Co or generate 65.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.69% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Victorias Secret Co
Performance |
| Timeline |
| GENERAL ELEC CAP |
| Victorias Secret |
GENERAL and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Victorias Secret
The main advantage of trading using opposite GENERAL and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Sabre Corpo | GENERAL vs. Papaya Growth Opportunity | GENERAL vs. Balchem | GENERAL vs. Axalta Coating Systems |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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