Correlation Between AKA Brands and Reebonz Holding
Can any of the company-specific risk be diversified away by investing in both AKA Brands and Reebonz Holding 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 AKA Brands and Reebonz Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKA Brands Holding and Reebonz Holding, you can compare the effects of market volatilities on AKA Brands and Reebonz Holding 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 AKA Brands with a short position of Reebonz Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKA Brands and Reebonz Holding.
Diversification Opportunities for AKA Brands and Reebonz Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AKA and Reebonz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKA Brands Holding and Reebonz Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reebonz Holding and AKA Brands 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 AKA Brands Holding are associated (or correlated) with Reebonz Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reebonz Holding has no effect on the direction of AKA Brands i.e., AKA Brands and Reebonz Holding go up and down completely randomly.
Pair Corralation between AKA Brands and Reebonz Holding
If you would invest 2,156 in AKA Brands Holding on September 6, 2024 and sell it today you would lose (24.00) from holding AKA Brands Holding or give up 1.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
AKA Brands Holding vs. Reebonz Holding
Performance |
Timeline |
AKA Brands Holding |
Reebonz Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AKA Brands and Reebonz Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AKA Brands and Reebonz Holding
The main advantage of trading using opposite AKA Brands and Reebonz Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKA Brands position performs unexpectedly, Reebonz Holding 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 Reebonz Holding will offset losses from the drop in Reebonz Holding's long position.AKA Brands vs. Brilliant Earth Group | AKA Brands vs. Lulus Fashion Lounge | AKA Brands vs. Torrid Holdings | AKA Brands vs. Aveanna Healthcare Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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