Correlation Between Victorias Secret and Powell Max
Can any of the company-specific risk be diversified away by investing in both Victorias Secret and Powell Max 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 Powell Max 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 Powell Max Limited, you can compare the effects of market volatilities on Victorias Secret and Powell Max 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 Powell Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Powell Max.
Diversification Opportunities for Victorias Secret and Powell Max
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victorias and Powell is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and Powell Max Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powell Max Limited 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 Powell Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powell Max Limited has no effect on the direction of Victorias Secret i.e., Victorias Secret and Powell Max go up and down completely randomly.
Pair Corralation between Victorias Secret and Powell Max
Given the investment horizon of 90 days Victorias Secret Co is expected to generate 0.6 times more return on investment than Powell Max. However, Victorias Secret Co is 1.66 times less risky than Powell Max. It trades about 0.03 of its potential returns per unit of risk. Powell Max Limited is currently generating about -0.04 per unit of risk. If you would invest 3,650 in Victorias Secret Co on September 19, 2024 and sell it today you would earn a total of 685.00 from holding Victorias Secret Co or generate 18.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 14.92% |
Values | Daily Returns |
Victorias Secret Co vs. Powell Max Limited
Performance |
Timeline |
Victorias Secret |
Powell Max Limited |
Victorias Secret and Powell Max Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Victorias Secret and Powell Max
The main advantage of trading using opposite Victorias Secret and Powell Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret position performs unexpectedly, Powell Max 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 Powell Max will offset losses from the drop in Powell Max's long position.Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
Powell Max vs. High Tide | Powell Max vs. China Jo Jo Drugstores | Powell Max vs. Walgreens Boots Alliance | Powell Max vs. 111 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 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.
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