Correlation Between Victorias Secret and Killbuck Bancshares

Can any of the company-specific risk be diversified away by investing in both Victorias Secret and Killbuck Bancshares 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 Killbuck Bancshares 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 Killbuck Bancshares, you can compare the effects of market volatilities on Victorias Secret and Killbuck Bancshares 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 Killbuck Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Killbuck Bancshares.

Diversification Opportunities for Victorias Secret and Killbuck Bancshares

-0.4

Correlation Coefficient

Victorias Secret  Killbuck Bancshares

Very good diversification

The 3 months correlation between Victorias and Killbuck is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and Killbuck Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killbuck Bancshares 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 Killbuck Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killbuck Bancshares has no effect on the direction of Victorias Secret i.e., Victorias Secret and Killbuck Bancshares go up and down completely randomly.

Pair Corralation between Victorias Secret and Killbuck Bancshares

Given the investment horizon of 90 days Victorias Secret Co is expected to under-perform the Killbuck Bancshares. But the stock apears to be less risky and, when comparing its historical volatility, Victorias Secret Co is 2.08 times less risky than Killbuck Bancshares. The stock trades about -0.32 of its potential returns per unit of risk. The Killbuck Bancshares is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  10,800  in Killbuck Bancshares on December 29, 2024 and sell it today you would earn a total of  1,600  from holding Killbuck Bancshares or generate 14.81% return on investment over 90 days.

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

Victorias Secret Co  vs.  Killbuck Bancshares

Victorias Secret

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victorias Secret Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Killbuck Bancshares

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Killbuck Bancshares are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Killbuck Bancshares sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Victorias Secret and Killbuck Bancshares

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

The idea behind Victorias Secret Co and Killbuck Bancshares 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.