Correlation Between Hugo Boss and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Hugo Boss and Oxford Industries 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 Hugo Boss and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugo Boss AG and Oxford Industries, you can compare the effects of market volatilities on Hugo Boss and Oxford Industries 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 Hugo Boss with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugo Boss and Oxford Industries.
Diversification Opportunities for Hugo Boss and Oxford Industries
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hugo and Oxford is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hugo Boss AG and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Hugo Boss 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 Hugo Boss AG are associated (or correlated) with Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of Hugo Boss i.e., Hugo Boss and Oxford Industries go up and down completely randomly.
Pair Corralation between Hugo Boss and Oxford Industries
Assuming the 90 days horizon Hugo Boss AG is expected to generate 1.62 times more return on investment than Oxford Industries. However, Hugo Boss is 1.62 times more volatile than Oxford Industries. It trades about 0.06 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.03 per unit of risk. If you would invest 828.00 in Hugo Boss AG on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Hugo Boss AG or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hugo Boss AG vs. Oxford Industries
Performance |
| Timeline |
| Hugo Boss AG |
| Oxford Industries |
Hugo Boss and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugo Boss and Oxford Industries
The main advantage of trading using opposite Hugo Boss and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugo Boss position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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