Correlation Between Lands End and Gap,
Can any of the company-specific risk be diversified away by investing in both Lands End and Gap, 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 Lands End and Gap, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lands End and The Gap,, you can compare the effects of market volatilities on Lands End and Gap, 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 Lands End with a short position of Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lands End and Gap,.
Diversification Opportunities for Lands End and Gap,
Good diversification
The 3 months correlation between Lands and Gap, is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, and Lands End 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 Lands End are associated (or correlated) with Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Lands End i.e., Lands End and Gap, go up and down completely randomly.
Pair Corralation between Lands End and Gap,
Allowing for the 90-day total investment horizon Lands End is expected to under-perform the Gap,. In addition to that, Lands End is 1.07 times more volatile than The Gap,. It trades about -0.08 of its total potential returns per unit of risk. The Gap, is currently generating about 0.2 per unit of volatility. If you would invest 2,190 in The Gap, on September 13, 2024 and sell it today you would earn a total of 332.00 from holding The Gap, or generate 15.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lands End vs. The Gap,
Performance |
| Timeline |
| Lands End |
| Gap, |
Lands End and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lands End and Gap,
The main advantage of trading using opposite Lands End and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| Lands End vs. Tillys Inc | Lands End vs. Zumiez Inc | Lands End vs. Citi Trends | Lands End vs. Cato Corporation |
| Gap, vs. Playtika Holding Corp | Gap, vs. Xponential Fitness | Gap, vs. Lululemon Athletica | Gap, vs. Skechers USA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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