Correlation Between WAGNERS HOLDING and Urban Outfitters
Can any of the company-specific risk be diversified away by investing in both WAGNERS HOLDING and Urban Outfitters 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 WAGNERS HOLDING and Urban Outfitters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WAGNERS HOLDING LTD and Urban Outfitters, you can compare the effects of market volatilities on WAGNERS HOLDING and Urban Outfitters 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 WAGNERS HOLDING with a short position of Urban Outfitters. Check out your portfolio center. Please also check ongoing floating volatility patterns of WAGNERS HOLDING and Urban Outfitters.
Diversification Opportunities for WAGNERS HOLDING and Urban Outfitters
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between WAGNERS and Urban is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding WAGNERS HOLDING LTD and Urban Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Outfitters and WAGNERS HOLDING 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 WAGNERS HOLDING LTD are associated (or correlated) with Urban Outfitters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Outfitters has no effect on the direction of WAGNERS HOLDING i.e., WAGNERS HOLDING and Urban Outfitters go up and down completely randomly.
Pair Corralation between WAGNERS HOLDING and Urban Outfitters
Assuming the 90 days horizon WAGNERS HOLDING LTD is expected to generate 1.55 times more return on investment than Urban Outfitters. However, WAGNERS HOLDING is 1.55 times more volatile than Urban Outfitters. It trades about 0.06 of its potential returns per unit of risk. Urban Outfitters is currently generating about 0.07 per unit of risk. If you would invest 44.00 in WAGNERS HOLDING LTD on October 28, 2024 and sell it today you would earn a total of 48.00 from holding WAGNERS HOLDING LTD or generate 109.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WAGNERS HOLDING LTD vs. Urban Outfitters
Performance |
| Timeline |
| WAGNERS HOLDING LTD |
| Urban Outfitters |
WAGNERS HOLDING and Urban Outfitters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WAGNERS HOLDING and Urban Outfitters
The main advantage of trading using opposite WAGNERS HOLDING and Urban Outfitters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WAGNERS HOLDING position performs unexpectedly, Urban Outfitters 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 Urban Outfitters will offset losses from the drop in Urban Outfitters' long position.| WAGNERS HOLDING vs. Nomad Foods | WAGNERS HOLDING vs. US FOODS HOLDING | WAGNERS HOLDING vs. SENECA FOODS A | WAGNERS HOLDING vs. BOSTON BEER A |
| Urban Outfitters vs. Tower One Wireless | Urban Outfitters vs. Samsung Electronics Co | Urban Outfitters vs. Renesas Electronics | Urban Outfitters vs. OFFICE DEPOT |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |