Correlation Between American Eagle and 718172CW7
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By analyzing existing cross correlation between American Eagle Outfitters and PM 5625 17 NOV 29, you can compare the effects of market volatilities on American Eagle and 718172CW7 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 718172CW7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and 718172CW7.
Diversification Opportunities for American Eagle and 718172CW7
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and 718172CW7 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and PM 5625 17 NOV 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM 5625 17 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 718172CW7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM 5625 17 has no effect on the direction of American Eagle i.e., American Eagle and 718172CW7 go up and down completely randomly.
Pair Corralation between American Eagle and 718172CW7
Considering the 90-day investment horizon American Eagle Outfitters is expected to generate 6.53 times more return on investment than 718172CW7. However, American Eagle is 6.53 times more volatile than PM 5625 17 NOV 29. It trades about 0.09 of its potential returns per unit of risk. PM 5625 17 NOV 29 is currently generating about -0.1 per unit of risk. If you would invest 1,914 in American Eagle Outfitters on September 4, 2024 and sell it today you would earn a total of 79.00 from holding American Eagle Outfitters or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Eagle Outfitters vs. PM 5625 17 NOV 29
Performance |
| Timeline |
| American Eagle Outfitters |
| PM 5625 17 |
American Eagle and 718172CW7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and 718172CW7
The main advantage of trading using opposite American Eagle and 718172CW7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, 718172CW7 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 718172CW7 will offset losses from the drop in 718172CW7's long position.| American Eagle vs. Urban Outfitters | American Eagle vs. Foot Locker | American Eagle vs. Childrens Place | American Eagle vs. Abercrombie Fitch |
| 718172CW7 vs. Sphere Entertainment Co | 718172CW7 vs. The Gap, | 718172CW7 vs. American Eagle Outfitters | 718172CW7 vs. Figs Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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