Correlation Between Victorias Secret and Yunji
Can any of the company-specific risk be diversified away by investing in both Victorias Secret and Yunji 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 Yunji 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 Yunji Inc, you can compare the effects of market volatilities on Victorias Secret and Yunji 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 Yunji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Yunji.
Diversification Opportunities for Victorias Secret and Yunji
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Victorias and Yunji is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of Victorias Secret i.e., Victorias Secret and Yunji go up and down completely randomly.
Pair Corralation between Victorias Secret and Yunji
Given the investment horizon of 90 days Victorias Secret Co is expected to under-perform the Yunji. But the stock apears to be less risky and, when comparing its historical volatility, Victorias Secret Co is 1.81 times less risky than Yunji. The stock trades about -0.26 of its potential returns per unit of risk. The Yunji Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Yunji Inc on November 18, 2024 and sell it today you would earn a total of 11.00 from holding Yunji Inc or generate 6.67% 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. Yunji Inc
Performance |
| Timeline |
| Victorias Secret |
| Yunji Inc |
Victorias Secret and Yunji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and Yunji
The main advantage of trading using opposite Victorias Secret and Yunji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret position performs unexpectedly, Yunji 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 Yunji will offset losses from the drop in Yunji'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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