Correlation Between Fossil and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Fossil 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 Fossil and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and Oxford Industries, you can compare the effects of market volatilities on Fossil 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 Fossil with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and Oxford Industries.
Diversification Opportunities for Fossil and Oxford Industries
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fossil and Oxford is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Fossil 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 Fossil Group 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 Fossil i.e., Fossil and Oxford Industries go up and down completely randomly.
Pair Corralation between Fossil and Oxford Industries
Given the investment horizon of 90 days Fossil Group is expected to generate 2.57 times more return on investment than Oxford Industries. However, Fossil is 2.57 times more volatile than Oxford Industries. It trades about 0.03 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.02 per unit of risk. If you would invest 112.00 in Fossil Group on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Fossil Group or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fossil Group vs. Oxford Industries
Performance |
| Timeline |
| Fossil Group |
| Oxford Industries |
Fossil and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil and Oxford Industries
The main advantage of trading using opposite Fossil and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil 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.| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |