Correlation Between Gap, and XBP Europe
Can any of the company-specific risk be diversified away by investing in both Gap, and XBP Europe 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 Gap, and XBP Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and XBP Europe Holdings, you can compare the effects of market volatilities on Gap, and XBP Europe 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 Gap, with a short position of XBP Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and XBP Europe.
Diversification Opportunities for Gap, and XBP Europe
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gap, and XBP is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and XBP Europe Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBP Europe Holdings and Gap, 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 The Gap, are associated (or correlated) with XBP Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBP Europe Holdings has no effect on the direction of Gap, i.e., Gap, and XBP Europe go up and down completely randomly.
Pair Corralation between Gap, and XBP Europe
Considering the 90-day investment horizon The Gap, is expected to under-perform the XBP Europe. But the stock apears to be less risky and, when comparing its historical volatility, The Gap, is 3.12 times less risky than XBP Europe. The stock trades about -0.01 of its potential returns per unit of risk. The XBP Europe Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 164.00 in XBP Europe Holdings on September 2, 2024 and sell it today you would lose (50.00) from holding XBP Europe Holdings or give up 30.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. XBP Europe Holdings
Performance |
| Timeline |
| Gap, |
| XBP Europe Holdings |
Gap, and XBP Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and XBP Europe
The main advantage of trading using opposite Gap, and XBP Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, XBP Europe 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 XBP Europe will offset losses from the drop in XBP Europe's long position.| Gap, vs. Boot Barn Holdings | Gap, vs. BJs Restaurants | Gap, vs. The Cheesecake Factory | Gap, vs. GEN Restaurant Group, |
| XBP Europe vs. Meiwu Technology Co | XBP Europe vs. Simon Property Group | XBP Europe vs. GEN Restaurant Group, | XBP Europe vs. Titan Machinery |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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