Correlation Between Victorias Secret and 1 800
Can any of the company-specific risk be diversified away by investing in both Victorias Secret and 1 800 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 1 800 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 1 800 FLOWERSCOM, you can compare the effects of market volatilities on Victorias Secret and 1 800 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 1 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and 1 800.
Diversification Opportunities for Victorias Secret and 1 800
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victorias and FLWS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and 1 800 FLOWERSCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1 800 FLOWERSCOM 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 1 800. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1 800 FLOWERSCOM has no effect on the direction of Victorias Secret i.e., Victorias Secret and 1 800 go up and down completely randomly.
Pair Corralation between Victorias Secret and 1 800
Given the investment horizon of 90 days Victorias Secret Co is expected to generate 1.13 times more return on investment than 1 800. However, Victorias Secret is 1.13 times more volatile than 1 800 FLOWERSCOM. It trades about 0.15 of its potential returns per unit of risk. 1 800 FLOWERSCOM is currently generating about 0.07 per unit of risk. If you would invest 2,513 in Victorias Secret Co on October 31, 2024 and sell it today you would earn a total of 1,103 from holding Victorias Secret Co or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victorias Secret Co vs. 1 800 FLOWERSCOM
Performance |
| Timeline |
| Victorias Secret |
| 1 800 FLOWERSCOM |
Victorias Secret and 1 800 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and 1 800
The main advantage of trading using opposite Victorias Secret and 1 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret position performs unexpectedly, 1 800 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 1 800 will offset losses from the drop in 1 800's long position.| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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