Correlation Between AM EAGLE and PVH Corp
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and PVH Corp 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 AM EAGLE and PVH Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and PVH Corp, you can compare the effects of market volatilities on AM EAGLE and PVH Corp 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 AM EAGLE with a short position of PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and PVH Corp.
Diversification Opportunities for AM EAGLE and PVH Corp
Excellent diversification
The 3 months correlation between AFG and PVH is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp and AM 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 AM EAGLE OUTFITTERS are associated (or correlated) with PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of AM EAGLE i.e., AM EAGLE and PVH Corp go up and down completely randomly.
Pair Corralation between AM EAGLE and PVH Corp
Assuming the 90 days trading horizon AM EAGLE OUTFITTERS is expected to under-perform the PVH Corp. In addition to that, AM EAGLE is 1.67 times more volatile than PVH Corp. It trades about -0.11 of its total potential returns per unit of risk. PVH Corp is currently generating about -0.08 per unit of volatility. If you would invest 10,310 in PVH Corp on October 14, 2024 and sell it today you would lose (195.00) from holding PVH Corp or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. PVH Corp
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| PVH Corp |
AM EAGLE and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and PVH Corp
The main advantage of trading using opposite AM EAGLE and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| AM EAGLE vs. VULCAN MATERIALS | AM EAGLE vs. INDOFOOD AGRI RES | AM EAGLE vs. GWILLI FOOD | AM EAGLE vs. Heidelberg Materials AG |
| PVH Corp vs. MICRONIC MYDATA | PVH Corp vs. CLEAN ENERGY FUELS | PVH Corp vs. Automatic Data Processing | PVH Corp vs. AM 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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