Correlation Between American Eagle and Express
Can any of the company-specific risk be diversified away by investing in both American Eagle and 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 American Eagle and Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Eagle Outfitters and Express, you can compare the effects of market volatilities on American Eagle and 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 American Eagle with a short position of Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and Express.
Diversification Opportunities for American Eagle and Express
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and Express is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express and American Eagle 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 American Eagle Outfitters are associated (or correlated) with Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Express has no effect on the direction of American Eagle i.e., American Eagle and Express go up and down completely randomly.
Pair Corralation between American Eagle and Express
If you would invest 76.00 in Express on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Express or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
American Eagle Outfitters vs. Express
Performance |
| Timeline |
| American Eagle Outfitters |
| Express |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Eagle and Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and Express
The main advantage of trading using opposite American Eagle and Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, 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 Express will offset losses from the drop in Express' long position.| American Eagle vs. Urban Outfitters | American Eagle vs. Foot Locker | American Eagle vs. Childrens Place | American Eagle vs. Abercrombie Fitch |
| Express vs. Koss Corporation | Express vs. BlackBerry | Express vs. Castor Maritime | Express vs. Clover Health Investments |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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