Correlation Between Charles Colvard and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Charles Colvard 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 Charles Colvard and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charles Colvard and Oxford Industries, you can compare the effects of market volatilities on Charles Colvard 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 Charles Colvard with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charles Colvard and Oxford Industries.
Diversification Opportunities for Charles Colvard and Oxford Industries
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Charles and Oxford is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Charles Colvard and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Charles Colvard 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 Charles Colvard 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 Charles Colvard i.e., Charles Colvard and Oxford Industries go up and down completely randomly.
Pair Corralation between Charles Colvard and Oxford Industries
Given the investment horizon of 90 days Charles Colvard is expected to generate 1.87 times more return on investment than Oxford Industries. However, Charles Colvard is 1.87 times more volatile than Oxford Industries. It trades about 0.07 of its potential returns per unit of risk. Oxford Industries is currently generating about 0.06 per unit of risk. If you would invest 126.00 in Charles Colvard on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Charles Colvard or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charles Colvard vs. Oxford Industries
Performance |
| Timeline |
| Charles Colvard |
| Oxford Industries |
Charles Colvard and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charles Colvard and Oxford Industries
The main advantage of trading using opposite Charles Colvard and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charles Colvard 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.| Charles Colvard vs. Lanvin Group Holdings | Charles Colvard vs. MYT Netherlands Parent | Charles Colvard vs. Movado Group | Charles Colvard vs. Birks Group |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |