Correlation Between Dogness International and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Dogness International 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 Dogness International and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogness International Corp and Oxford Industries, you can compare the effects of market volatilities on Dogness International 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 Dogness International with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogness International and Oxford Industries.
Diversification Opportunities for Dogness International and Oxford Industries
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dogness and Oxford is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dogness International Corp and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Dogness International 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 Dogness International Corp 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 Dogness International i.e., Dogness International and Oxford Industries go up and down completely randomly.
Pair Corralation between Dogness International and Oxford Industries
Given the investment horizon of 90 days Dogness International Corp is expected to generate 4.16 times more return on investment than Oxford Industries. However, Dogness International is 4.16 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 0.0 per unit of risk. If you would invest 2,080 in Dogness International Corp on August 30, 2024 and sell it today you would earn a total of 3,106 from holding Dogness International Corp or generate 149.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dogness International Corp vs. Oxford Industries
Performance |
| Timeline |
| Dogness International |
| Oxford Industries |
Dogness International and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogness International and Oxford Industries
The main advantage of trading using opposite Dogness International and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogness International 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.| Dogness International vs. Escalade Incorporated | Dogness International vs. JAKKS Pacific | Dogness International vs. Clarus Corp | Dogness International vs. Six Flags Entertainment |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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