Correlation Between Twitter and L Brands
Can any of the company-specific risk be diversified away by investing in both Twitter and L Brands 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 Twitter and L Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and L Brands, you can compare the effects of market volatilities on Twitter and L Brands 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 Twitter with a short position of L Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and L Brands.
Diversification Opportunities for Twitter and L Brands
Pay attention - limited upside
The 3 months correlation between Twitter and L Brands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and L Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Brands and Twitter 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 Twitter are associated (or correlated) with L Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Brands has no effect on the direction of Twitter i.e., Twitter and L Brands go up and down completely randomly.
Pair Corralation between Twitter and L Brands
If you would invest (100.00) in L Brands on January 25, 2024 and sell it today you would earn a total of 100.00 from holding L Brands 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 |
Twitter vs. L Brands
Performance |
Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
L Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Twitter and L Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Twitter and L Brands
The main advantage of trading using opposite Twitter and L Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, L Brands 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 L Brands will offset losses from the drop in L Brands' long position.Twitter vs. Mid Atlantic Home Health | Twitter vs. Planet Fitness | Twitter vs. JBG SMITH Properties | Twitter vs. Bassett Furniture Industries |
L Brands vs. SEI Investments | L Brands vs. Skillful Craftsman Education | L Brands vs. Lindblad Expeditions Holdings | L Brands vs. TFI International |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Transaction History View history of all your transactions and understand their impact on performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |