Correlation Between Express and Shoe Carnival
Can any of the company-specific risk be diversified away by investing in both Express and Shoe Carnival 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 Express and Shoe Carnival into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Express and Shoe Carnival, you can compare the effects of market volatilities on Express and Shoe Carnival 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 Express with a short position of Shoe Carnival. Check out your portfolio center. Please also check ongoing floating volatility patterns of Express and Shoe Carnival.
Diversification Opportunities for Express and Shoe Carnival
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Express and Shoe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Express and Shoe Carnival in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoe Carnival and Express 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 Express are associated (or correlated) with Shoe Carnival. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoe Carnival has no effect on the direction of Express i.e., Express and Shoe Carnival go up and down completely randomly.
Pair Corralation between Express and Shoe Carnival
If you would invest 2,530 in Shoe Carnival on November 9, 2024 and sell it today you would earn a total of 126.00 from holding Shoe Carnival or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Express vs. Shoe Carnival
Performance |
| Timeline |
| Express |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Shoe Carnival |
Express and Shoe Carnival Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Express and Shoe Carnival
The main advantage of trading using opposite Express and Shoe Carnival positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Express position performs unexpectedly, Shoe Carnival 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 Shoe Carnival will offset losses from the drop in Shoe Carnival's long position.| Express vs. Koss Corporation | Express vs. BlackBerry | Express vs. Castor Maritime | Express vs. Clover Health Investments |
| Shoe Carnival vs. Citi Trends | Shoe Carnival vs. Zumiez Inc | Shoe Carnival vs. Buckle Inc | Shoe Carnival vs. Cato Corporation |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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