Correlation Between Leslies and 1 800

Can any of the company-specific risk be diversified away by investing in both Leslies 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 Leslies and 1 800 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Leslies and 1 800 FLOWERSCOM, you can compare the effects of market volatilities on Leslies 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 Leslies with a short position of 1 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leslies and 1 800.

Diversification Opportunities for Leslies and 1 800

-0.06

Correlation Coefficient

Leslies  1 800

Good diversification

The 3 months correlation between Leslies and FLWS is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Leslies 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 Leslies 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 Leslies 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 Leslies i.e., Leslies and 1 800 go up and down completely randomly.

Pair Corralation between Leslies and 1 800

Given the investment horizon of 90 days Leslies is expected to under-perform the 1 800. In addition to that, Leslies is 2.55 times more volatile than 1 800 FLOWERSCOM. It trades about -0.02 of its total potential returns per unit of risk. 1 800 FLOWERSCOM is currently generating about 0.03 per unit of volatility. If you would invest  803.00  in 1 800 FLOWERSCOM on August 30, 2024 and sell it today you would earn a total of  26.00  from holding 1 800 FLOWERSCOM or generate 3.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Leslies  vs.  1 800 FLOWERSCOM

Leslies

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Leslies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

1 800 FLOWERSCOM

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 1 800 FLOWERSCOM are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, 1 800 is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Leslies and 1 800

The main advantage of trading using opposite Leslies and 1 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leslies 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.

The idea behind Leslies and 1 800 FLOWERSCOM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.