Correlation Between 49456BAU5 and 1 800

Can any of the company-specific risk be diversified away by investing in both 49456BAU5 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 49456BAU5 and 1 800 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KMI 175 15 NOV 26 and 1 800 FLOWERSCOM, you can compare the effects of market volatilities on 49456BAU5 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 49456BAU5 with a short position of 1 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49456BAU5 and 1 800.

Diversification Opportunities for 49456BAU5 and 1 800

0.26

Correlation Coefficient

49456BAU5  1 800

Modest diversification

The 3 months correlation between 49456BAU5 and FLWS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding KMI 175 15 NOV 26 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 49456BAU5 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 KMI 175 15 NOV 26 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 49456BAU5 i.e., 49456BAU5 and 1 800 go up and down completely randomly.

Pair Corralation between 49456BAU5 and 1 800

Assuming the 90 days trading horizon KMI 175 15 NOV 26 is expected to generate 0.34 times more return on investment than 1 800. However, KMI 175 15 NOV 26 is 2.91 times less risky than 1 800. It trades about 0.01 of its potential returns per unit of risk. 1 800 FLOWERSCOM is currently generating about -0.12 per unit of risk. If you would invest  9,466  in KMI 175 15 NOV 26 on December 24, 2024 and sell it today you would lose (1.00) from holding KMI 175 15 NOV 26 or give up 0.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.67%
Values	Daily Returns

KMI 175 15 NOV 26  vs.  1 800 FLOWERSCOM

KMI 175 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days KMI 175 15 NOV 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 49456BAU5 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

1 800 FLOWERSCOM

Risk-Adjusted Performance

Very Weak

Over the last 90 days 1 800 FLOWERSCOM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with 49456BAU5 and 1 800

The main advantage of trading using opposite 49456BAU5 and 1 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49456BAU5 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 KMI 175 15 NOV 26 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.