Correlation Between 111 and PetMed Express

Can any of the company-specific risk be diversified away by investing in both 111 and PetMed Express 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 111 and PetMed Express into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 111 Inc and PetMed Express, you can compare the effects of market volatilities on 111 and PetMed Express 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 111 with a short position of PetMed Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and PetMed Express.

Diversification Opportunities for 111 and PetMed Express

0.62

Correlation Coefficient

111  PetMed Express

Poor diversification

The 3 months correlation between 111 and PetMed is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and PetMed Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetMed Express and 111 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 111 Inc are associated (or correlated) with PetMed Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetMed Express has no effect on the direction of 111 i.e., 111 and PetMed Express go up and down completely randomly.

Pair Corralation between 111 and PetMed Express

Allowing for the 90-day total investment horizon 111 Inc is expected to generate 0.77 times more return on investment than PetMed Express. However, 111 Inc is 1.3 times less risky than PetMed Express. It trades about -0.04 of its potential returns per unit of risk. PetMed Express is currently generating about -0.04 per unit of risk. If you would invest  748.00  in 111 Inc on May 7, 2025 and sell it today you would lose (61.00) from holding 111 Inc or give up 8.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

111 Inc  vs.  PetMed Express

111 Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days 111 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

PetMed Express

Risk-Adjusted Performance

Weakest

Over the last 90 days PetMed Express has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with 111 and PetMed Express

The main advantage of trading using opposite 111 and PetMed Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, PetMed Express 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 PetMed Express will offset losses from the drop in PetMed Express' long position.

The idea behind 111 Inc and PetMed Express 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.