Correlation Between American Eagle and AEON STORES
Can any of the company-specific risk be diversified away by investing in both American Eagle and AEON STORES 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 AEON STORES 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 AEON STORES, you can compare the effects of market volatilities on American Eagle and AEON STORES 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 AEON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and AEON STORES.
Diversification Opportunities for American Eagle and AEON STORES
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and AEON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and AEON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON STORES 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 AEON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON STORES has no effect on the direction of American Eagle i.e., American Eagle and AEON STORES go up and down completely randomly.
Pair Corralation between American Eagle and AEON STORES
If you would invest 6.05 in AEON STORES on September 2, 2024 and sell it today you would earn a total of 0.00 from holding AEON STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Eagle Outfitters vs. AEON STORES
Performance |
| Timeline |
| American Eagle Outfitters |
| AEON STORES |
American Eagle and AEON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and AEON STORES
The main advantage of trading using opposite American Eagle and AEON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, AEON STORES 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 AEON STORES will offset losses from the drop in AEON STORES's long position.| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
| AEON STORES vs. SIVERS SEMICONDUCTORS AB | AEON STORES vs. Darden Restaurants | AEON STORES vs. Reliance Steel Aluminum | AEON STORES vs. Q2M Managementberatung AG |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |