Correlation Between Vera Bradley and STORE
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By analyzing existing cross correlation between Vera Bradley and STORE CAP P, you can compare the effects of market volatilities on Vera Bradley and STORE 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 Vera Bradley with a short position of STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vera Bradley and STORE.
Diversification Opportunities for Vera Bradley and STORE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vera and STORE is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Vera Bradley and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P and Vera Bradley 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 Vera Bradley are associated (or correlated) with STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of Vera Bradley i.e., Vera Bradley and STORE go up and down completely randomly.
Pair Corralation between Vera Bradley and STORE
Considering the 90-day investment horizon Vera Bradley is expected to generate 0.62 times more return on investment than STORE. However, Vera Bradley is 1.6 times less risky than STORE. It trades about 0.14 of its potential returns per unit of risk. STORE CAP P is currently generating about -0.14 per unit of risk. If you would invest 344.00 in Vera Bradley on October 21, 2024 and sell it today you would earn a total of 34.00 from holding Vera Bradley or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.11% |
| Values | Daily Returns |
Vera Bradley vs. STORE CAP P
Performance |
| Timeline |
| Vera Bradley |
| STORE CAP P |
Vera Bradley and STORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vera Bradley and STORE
The main advantage of trading using opposite Vera Bradley and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Bradley position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE's long position.| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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