Correlation Between Smart Share and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Smart Share 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 Smart Share and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and Oxford Industries, you can compare the effects of market volatilities on Smart Share 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 Smart Share with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and Oxford Industries.
Diversification Opportunities for Smart Share and Oxford Industries
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Smart and Oxford is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Smart Share 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 Smart Share Global 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 Smart Share i.e., Smart Share and Oxford Industries go up and down completely randomly.
Pair Corralation between Smart Share and Oxford Industries
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 2.23 times more return on investment than Oxford Industries. However, Smart Share is 2.23 times more volatile than Oxford Industries. It trades about 0.0 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.02 per unit of risk. If you would invest 107.00 in Smart Share Global on August 27, 2024 and sell it today you would lose (38.00) from holding Smart Share Global or give up 35.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Share Global vs. Oxford Industries
Performance |
| Timeline |
| Smart Share Global |
| Oxford Industries |
Smart Share and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and Oxford Industries
The main advantage of trading using opposite Smart Share and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share 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.| Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash | Smart Share vs. Carriage Services |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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