Correlation Between Sequential Brands and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both Sequential Brands and Inter Parfums 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 Sequential Brands and Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sequential Brands Group and Inter Parfums, you can compare the effects of market volatilities on Sequential Brands and Inter Parfums 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 Sequential Brands with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequential Brands and Inter Parfums.
Diversification Opportunities for Sequential Brands and Inter Parfums
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sequential and Inter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sequential Brands Group and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and Sequential 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 Sequential Brands Group are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Sequential Brands i.e., Sequential Brands and Inter Parfums go up and down completely randomly.
Pair Corralation between Sequential Brands and Inter Parfums
If you would invest 7,879 in Inter Parfums on January 20, 2024 and sell it today you would earn a total of 4,513 from holding Inter Parfums or generate 57.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sequential Brands Group vs. Inter Parfums
Performance |
| Timeline |
| Sequential Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inter Parfums |
Sequential Brands and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sequential Brands and Inter Parfums
The main advantage of trading using opposite Sequential Brands and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sequential Brands position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Sequential Brands vs. US Global Investors | Sequential Brands vs. Boot Barn Holdings | Sequential Brands vs. Canada Goose Holdings | Sequential Brands vs. PVH Corp |
| Inter Parfums vs. Seneca Foods Corp | Inter Parfums vs. Central Garden Pet | Inter Parfums vs. Central Garden Pet | Inter Parfums vs. Lifeway Foods |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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