Correlation Between Yum Brands and Tiffany
Can any of the company-specific risk be diversified away by investing in both Yum Brands and Tiffany 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 Yum Brands and Tiffany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yum Brands and Tiffany Co, you can compare the effects of market volatilities on Yum Brands and Tiffany 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 Yum Brands with a short position of Tiffany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yum Brands and Tiffany.
Diversification Opportunities for Yum Brands and Tiffany
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yum and Tiffany is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yum Brands and Tiffany Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiffany and Yum 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 Yum Brands are associated (or correlated) with Tiffany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiffany has no effect on the direction of Yum Brands i.e., Yum Brands and Tiffany go up and down completely randomly.
Pair Corralation between Yum Brands and Tiffany
If you would invest 13,106 in Yum Brands on January 20, 2024 and sell it today you would earn a total of 744.00 from holding Yum Brands or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Yum Brands vs. Tiffany Co
Performance |
| Timeline |
| Yum Brands |
| Tiffany |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yum Brands and Tiffany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yum Brands and Tiffany
The main advantage of trading using opposite Yum Brands and Tiffany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yum Brands position performs unexpectedly, Tiffany 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 Tiffany will offset losses from the drop in Tiffany's long position.| Yum Brands vs. Shake Shack | Yum Brands vs. Papa Johns International | Yum Brands vs. Dominos Pizza | Yum Brands vs. Jack In The |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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