Correlation Between 111 and Container Store

Can any of the company-specific risk be diversified away by investing in both 111 and Container Store 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 111 and Container Store into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 111 Inc and Container Store Group, you can compare the effects of market volatilities on 111 and Container Store 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 111 with a short position of Container Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and Container Store.

Diversification Opportunities for 111 and Container Store

0.03

Correlation Coefficient

111  Container Store

Significant diversification

The 3 months correlation between 111 and Container is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and Container Store Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Container Store Group and 111 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 111 Inc are associated (or correlated) with Container Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Container Store Group has no effect on the direction of 111 i.e., 111 and Container Store go up and down completely randomly.

Pair Corralation between 111 and Container Store

Allowing for the 90-day total investment horizon 111 Inc is expected to generate 0.61 times more return on investment than Container Store. However, 111 Inc is 1.63 times less risky than Container Store. It trades about 0.11 of its potential returns per unit of risk. Container Store Group is currently generating about -0.11 per unit of risk. If you would invest  56.00  in 111 Inc on September 15, 2024 and sell it today you would earn a total of  27.00  from holding 111 Inc or generate 48.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

111 Inc  vs.  Container Store Group

111 Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 111 Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, 111 demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Container Store Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with 111 and Container Store

The main advantage of trading using opposite 111 and Container Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, Container Store 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 Container Store will offset losses from the drop in Container Store's long position.

The idea behind 111 Inc and Container Store Group 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.