Correlation Between CSS Industries and Five Below
Can any of the company-specific risk be diversified away by investing in both CSS Industries and Five Below 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 CSS Industries and Five Below into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSS Industries and Five Below, you can compare the effects of market volatilities on CSS Industries and Five Below 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 CSS Industries with a short position of Five Below. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSS Industries and Five Below.
Diversification Opportunities for CSS Industries and Five Below
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CSS and Five is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSS Industries and Five Below in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Below and CSS Industries 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 CSS Industries are associated (or correlated) with Five Below. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Below has no effect on the direction of CSS Industries i.e., CSS Industries and Five Below go up and down completely randomly.
Pair Corralation between CSS Industries and Five Below
If you would invest 15,151 in Five Below on January 25, 2024 and sell it today you would lose (372.00) from holding Five Below or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CSS Industries vs. Five Below
Performance |
| Timeline |
| CSS Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Five Below |
CSS Industries and Five Below Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSS Industries and Five Below
The main advantage of trading using opposite CSS Industries and Five Below positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSS Industries position performs unexpectedly, Five Below 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 Five Below will offset losses from the drop in Five Below's long position.| CSS Industries vs. Radcom | CSS Industries vs. Cementos Pacasmayo SAA | CSS Industries vs. Highway Holdings Limited | CSS Industries vs. ZK International Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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