Correlation Between ThredUp and BSANCI

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

By analyzing existing cross correlation between ThredUp and BSANCI 27 10 JAN 25, you can compare the effects of market volatilities on ThredUp and BSANCI 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 ThredUp with a short position of BSANCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ThredUp and BSANCI.

Diversification Opportunities for ThredUp and BSANCI

0.69

Correlation Coefficient

ThredUp  BSANCI

Poor diversification

The 3 months correlation between ThredUp and BSANCI is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ThredUp and BSANCI 27 10 JAN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSANCI 27 10 and ThredUp 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 ThredUp are associated (or correlated) with BSANCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSANCI 27 10 has no effect on the direction of ThredUp i.e., ThredUp and BSANCI go up and down completely randomly.

Pair Corralation between ThredUp and BSANCI

Given the investment horizon of 90 days ThredUp is expected to generate 11.42 times more return on investment than BSANCI. However, ThredUp is 11.42 times more volatile than BSANCI 27 10 JAN 25. It trades about 0.04 of its potential returns per unit of risk. BSANCI 27 10 JAN 25 is currently generating about -0.08 per unit of risk. If you would invest  167.00  in ThredUp on October 9, 2024 and sell it today you would lose (28.00) from holding ThredUp or give up 16.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	23.12%
Values	Daily Returns

ThredUp  vs.  BSANCI 27 10 JAN 25

ThredUp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ThredUp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, ThredUp reported solid returns over the last few months and may actually be approaching a breakup point.

BSANCI 27 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BSANCI 27 10 JAN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for BSANCI 27 10 JAN 25 investors.

Pair Trading with ThredUp and BSANCI

The main advantage of trading using opposite ThredUp and BSANCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ThredUp position performs unexpectedly, BSANCI 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 BSANCI will offset losses from the drop in BSANCI's long position.

The idea behind ThredUp and BSANCI 27 10 JAN 25 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.