Correlation Between American Eagle and 04686JAF8
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By analyzing existing cross correlation between American Eagle Outfitters and ATH 665 01 FEB 33, you can compare the effects of market volatilities on American Eagle and 04686JAF8 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 04686JAF8. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and 04686JAF8.
Diversification Opportunities for American Eagle and 04686JAF8
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and 04686JAF8 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and ATH 665 01 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 665 01 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 04686JAF8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 665 01 has no effect on the direction of American Eagle i.e., American Eagle and 04686JAF8 go up and down completely randomly.
Pair Corralation between American Eagle and 04686JAF8
Considering the 90-day investment horizon American Eagle is expected to generate 4.59 times less return on investment than 04686JAF8. In addition to that, American Eagle is 1.3 times more volatile than ATH 665 01 FEB 33. It trades about 0.0 of its total potential returns per unit of risk. ATH 665 01 FEB 33 is currently generating about 0.02 per unit of volatility. If you would invest 10,795 in ATH 665 01 FEB 33 on September 3, 2024 and sell it today you would earn a total of 85.00 from holding ATH 665 01 FEB 33 or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
American Eagle Outfitters vs. ATH 665 01 FEB 33
Performance |
| Timeline |
| American Eagle Outfitters |
| ATH 665 01 |
American Eagle and 04686JAF8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and 04686JAF8
The main advantage of trading using opposite American Eagle and 04686JAF8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, 04686JAF8 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 04686JAF8 will offset losses from the drop in 04686JAF8's long position.| American Eagle vs. Ross Stores | American Eagle vs. Childrens Place | American Eagle vs. Buckle Inc | American Eagle vs. Guess Inc |
| 04686JAF8 vs. HUTCHMED DRC | 04686JAF8 vs. Ardelyx | 04686JAF8 vs. Centessa Pharmaceuticals PLC | 04686JAF8 vs. Sonida Senior Living |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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