Correlation Between Siriuspoint and Kate Spade

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

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

Diversification Opportunities for Siriuspoint and Kate Spade

0.0

Correlation Coefficient

Siriuspoint  Kate Spade

Pay attention - limited upside

The 3 months correlation between Siriuspoint and Kate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Kate Spade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kate Spade and Siriuspoint 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 Siriuspoint are associated (or correlated) with Kate Spade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kate Spade has no effect on the direction of Siriuspoint i.e., Siriuspoint and Kate Spade go up and down completely randomly.

Pair Corralation between Siriuspoint and Kate Spade

If you would invest (100.00) in Kate Spade on February 6, 2024 and sell it today you would earn a total of  100.00  from holding Kate Spade or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Siriuspoint  vs.  Kate Spade

Siriuspoint

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siriuspoint are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Siriuspoint is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Kate Spade

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kate Spade has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Kate Spade is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Siriuspoint and Kate Spade

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

The idea behind Siriuspoint and Kate Spade 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.