Correlation Between 1StdibsCom and Urban Outfitters
Can any of the company-specific risk be diversified away by investing in both 1StdibsCom and Urban Outfitters 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 1StdibsCom and Urban Outfitters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1StdibsCom and Urban Outfitters, you can compare the effects of market volatilities on 1StdibsCom and Urban Outfitters 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 1StdibsCom with a short position of Urban Outfitters. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1StdibsCom and Urban Outfitters.
Diversification Opportunities for 1StdibsCom and Urban Outfitters
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1StdibsCom and Urban is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding 1StdibsCom and Urban Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Outfitters and 1StdibsCom 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 1StdibsCom are associated (or correlated) with Urban Outfitters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Outfitters has no effect on the direction of 1StdibsCom i.e., 1StdibsCom and Urban Outfitters go up and down completely randomly.
Pair Corralation between 1StdibsCom and Urban Outfitters
Given the investment horizon of 90 days 1StdibsCom is expected to generate 1.0 times less return on investment than Urban Outfitters. But when comparing it to its historical volatility, 1StdibsCom is 1.03 times less risky than Urban Outfitters. It trades about 0.07 of its potential returns per unit of risk. Urban Outfitters is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,374 in Urban Outfitters on October 20, 2024 and sell it today you would earn a total of 127.00 from holding Urban Outfitters or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
1StdibsCom vs. Urban Outfitters
Performance |
| Timeline |
| 1StdibsCom |
| Urban Outfitters |
1StdibsCom and Urban Outfitters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1StdibsCom and Urban Outfitters
The main advantage of trading using opposite 1StdibsCom and Urban Outfitters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1StdibsCom position performs unexpectedly, Urban Outfitters 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 Urban Outfitters will offset losses from the drop in Urban Outfitters' long position.| 1StdibsCom vs. Hour Loop | 1StdibsCom vs. Liquidity Services | 1StdibsCom vs. Qurate Retail Series | 1StdibsCom vs. Emerge Commerce |
| Urban Outfitters vs. American Eagle Outfitters | Urban Outfitters vs. Foot Locker | Urban Outfitters vs. Childrens Place | Urban Outfitters vs. Abercrombie Fitch |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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