Correlation Between Five Below and Joann
Can any of the company-specific risk be diversified away by investing in both Five Below and Joann 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 Five Below and Joann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Five Below and Joann Inc, you can compare the effects of market volatilities on Five Below and Joann 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 Five Below with a short position of Joann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Five Below and Joann.
Diversification Opportunities for Five Below and Joann
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Five and Joann is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Five Below and Joann Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joann Inc and Five Below 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 Five Below are associated (or correlated) with Joann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joann Inc has no effect on the direction of Five Below i.e., Five Below and Joann go up and down completely randomly.
Pair Corralation between Five Below and Joann
If you would invest 9,161 in Five Below on September 25, 2024 and sell it today you would earn a total of 1,589 from holding Five Below or generate 17.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Five Below vs. Joann Inc
Performance |
Timeline |
Five Below |
Joann Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Five Below and Joann Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Five Below and Joann
The main advantage of trading using opposite Five Below and Joann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Five Below position performs unexpectedly, Joann 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 Joann will offset losses from the drop in Joann's long position.Five Below vs. OReilly Automotive | Five Below vs. AutoZone | Five Below vs. Genuine Parts Co | Five Below vs. Williams Sonoma |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |