Correlation Between American Eagle and TANGER
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By analyzing existing cross correlation between American Eagle Outfitters and TANGER PPTYS LTD, you can compare the effects of market volatilities on American Eagle and TANGER 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 TANGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and TANGER.
Diversification Opportunities for American Eagle and TANGER
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and TANGER is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and TANGER PPTYS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TANGER PPTYS LTD 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 TANGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TANGER PPTYS LTD has no effect on the direction of American Eagle i.e., American Eagle and TANGER go up and down completely randomly.
Pair Corralation between American Eagle and TANGER
Considering the 90-day investment horizon American Eagle Outfitters is expected to under-perform the TANGER. In addition to that, American Eagle is 1.38 times more volatile than TANGER PPTYS LTD. It trades about -0.1 of its total potential returns per unit of risk. TANGER PPTYS LTD is currently generating about -0.09 per unit of volatility. If you would invest 9,790 in TANGER PPTYS LTD on September 3, 2024 and sell it today you would lose (413.00) from holding TANGER PPTYS LTD or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
American Eagle Outfitters vs. TANGER PPTYS LTD
Performance |
| Timeline |
| American Eagle Outfitters |
| TANGER PPTYS LTD |
American Eagle and TANGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and TANGER
The main advantage of trading using opposite American Eagle and TANGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, TANGER 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 TANGER will offset losses from the drop in TANGER's long position.| American Eagle vs. Ross Stores | American Eagle vs. Childrens Place | American Eagle vs. Buckle Inc | American Eagle vs. Guess Inc |
| TANGER vs. Nike Inc | TANGER vs. Mangazeya Mining | TANGER vs. Tandy Leather Factory | TANGER vs. American Eagle Outfitters |
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.
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