Correlation Between EZGO Technologies and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both EZGO Technologies 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 EZGO Technologies and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZGO Technologies and Oxford Industries, you can compare the effects of market volatilities on EZGO Technologies 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 EZGO Technologies with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZGO Technologies and Oxford Industries.
Diversification Opportunities for EZGO Technologies and Oxford Industries
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EZGO and Oxford is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and EZGO Technologies 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 EZGO Technologies 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 EZGO Technologies i.e., EZGO Technologies and Oxford Industries go up and down completely randomly.
Pair Corralation between EZGO Technologies and Oxford Industries
Given the investment horizon of 90 days EZGO Technologies is expected to under-perform the Oxford Industries. In addition to that, EZGO Technologies is 1.98 times more volatile than Oxford Industries. It trades about -0.17 of its total potential returns per unit of risk. Oxford Industries is currently generating about -0.25 per unit of volatility. If you would invest 8,590 in Oxford Industries on November 9, 2024 and sell it today you would lose (1,186) from holding Oxford Industries or give up 13.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EZGO Technologies vs. Oxford Industries
Performance |
| Timeline |
| EZGO Technologies |
| Oxford Industries |
EZGO Technologies and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZGO Technologies and Oxford Industries
The main advantage of trading using opposite EZGO Technologies and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZGO Technologies 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.| EZGO Technologies vs. Vision Marine Technologies | EZGO Technologies vs. Marine Products | EZGO Technologies vs. Thor Industries | EZGO Technologies vs. BRP Inc |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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