Correlation Between American Eagle and Baywa AG
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By analyzing existing cross correlation between American Eagle Outfitters and Baywa AG Vink, you can compare the effects of market volatilities on American Eagle and Baywa AG 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 Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and Baywa AG.
Diversification Opportunities for American Eagle and Baywa AG
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Baywa is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink 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 Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of American Eagle i.e., American Eagle and Baywa AG go up and down completely randomly.
Pair Corralation between American Eagle and Baywa AG
Assuming the 90 days trading horizon American Eagle is expected to generate 5.94 times less return on investment than Baywa AG. But when comparing it to its historical volatility, American Eagle Outfitters is 1.05 times less risky than Baywa AG. It trades about 0.01 of its potential returns per unit of risk. Baywa AG Vink is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 924.00 in Baywa AG Vink on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Baywa AG Vink or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Eagle Outfitters vs. Baywa AG Vink
Performance |
| Timeline |
| American Eagle Outfitters |
| Baywa AG Vink |
American Eagle and Baywa AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and Baywa AG
The main advantage of trading using opposite American Eagle and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG's long position.| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
| Baywa AG vs. Coor Service Management | Baywa AG vs. Waste Management | Baywa AG vs. Platinum Investment Management | Baywa AG vs. Brockhaus Capital Management |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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