Correlation Between Victorias Secret and Dennys Corp
Can any of the company-specific risk be diversified away by investing in both Victorias Secret and Dennys Corp 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 Victorias Secret and Dennys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victorias Secret Co and Dennys Corp, you can compare the effects of market volatilities on Victorias Secret and Dennys Corp 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 Victorias Secret with a short position of Dennys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Dennys Corp.
Diversification Opportunities for Victorias Secret and Dennys Corp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Victorias and Dennys is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and Dennys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dennys Corp and Victorias Secret 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 Victorias Secret Co are associated (or correlated) with Dennys Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dennys Corp has no effect on the direction of Victorias Secret i.e., Victorias Secret and Dennys Corp go up and down completely randomly.
Pair Corralation between Victorias Secret and Dennys Corp
Given the investment horizon of 90 days Victorias Secret Co is expected to generate 0.76 times more return on investment than Dennys Corp. However, Victorias Secret Co is 1.31 times less risky than Dennys Corp. It trades about 0.36 of its potential returns per unit of risk. Dennys Corp is currently generating about 0.0 per unit of risk. If you would invest 3,248 in Victorias Secret Co on September 3, 2024 and sell it today you would earn a total of 636.00 from holding Victorias Secret Co or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victorias Secret Co vs. Dennys Corp
Performance |
| Timeline |
| Victorias Secret |
| Dennys Corp |
Victorias Secret and Dennys Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and Dennys Corp
The main advantage of trading using opposite Victorias Secret and Dennys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret position performs unexpectedly, Dennys Corp 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 Dennys Corp will offset losses from the drop in Dennys Corp's long position.| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |