Correlation Between Emerson Radio and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Emerson Radio 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 Emerson Radio and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerson Radio and Oxford Industries, you can compare the effects of market volatilities on Emerson Radio 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 Emerson Radio with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Radio and Oxford Industries.
Diversification Opportunities for Emerson Radio and Oxford Industries
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emerson and Oxford is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Radio and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Emerson Radio 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 Emerson Radio 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 Emerson Radio i.e., Emerson Radio and Oxford Industries go up and down completely randomly.
Pair Corralation between Emerson Radio and Oxford Industries
Considering the 90-day investment horizon Emerson Radio is expected to under-perform the Oxford Industries. In addition to that, Emerson Radio is 1.51 times more volatile than Oxford Industries. It trades about -0.2 of its total potential returns per unit of risk. Oxford Industries is currently generating about 0.21 per unit of volatility. If you would invest 7,548 in Oxford Industries on August 30, 2024 and sell it today you would earn a total of 749.00 from holding Oxford Industries or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerson Radio vs. Oxford Industries
Performance |
| Timeline |
| Emerson Radio |
| Oxford Industries |
Emerson Radio and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Radio and Oxford Industries
The main advantage of trading using opposite Emerson Radio and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Radio 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.| Emerson Radio vs. VOXX International | Emerson Radio vs. LG Display Co | Emerson Radio vs. Vizio Holding Corp | Emerson Radio vs. Turtle Beach Corp |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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