Correlation Between MYT Netherlands and Fossil
Can any of the company-specific risk be diversified away by investing in both MYT Netherlands and Fossil 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 MYT Netherlands and Fossil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYT Netherlands Parent and Fossil Group, you can compare the effects of market volatilities on MYT Netherlands and Fossil 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 MYT Netherlands with a short position of Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYT Netherlands and Fossil.
Diversification Opportunities for MYT Netherlands and Fossil
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MYT and Fossil is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MYT Netherlands Parent and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group and MYT Netherlands 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 MYT Netherlands Parent are associated (or correlated) with Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of MYT Netherlands i.e., MYT Netherlands and Fossil go up and down completely randomly.
Pair Corralation between MYT Netherlands and Fossil
Given the investment horizon of 90 days MYT Netherlands is expected to generate 6.75 times less return on investment than Fossil. In addition to that, MYT Netherlands is 1.05 times more volatile than Fossil Group. It trades about 0.0 of its total potential returns per unit of risk. Fossil Group is currently generating about 0.02 per unit of volatility. If you would invest 115.00 in Fossil Group on August 23, 2024 and sell it today you would earn a total of 0.00 from holding Fossil Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYT Netherlands Parent vs. Fossil Group
Performance |
| Timeline |
| MYT Netherlands Parent |
| Fossil Group |
MYT Netherlands and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYT Netherlands and Fossil
The main advantage of trading using opposite MYT Netherlands and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYT Netherlands position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's long position.| MYT Netherlands vs. Movado Group | MYT Netherlands vs. Envela Corp | MYT Netherlands vs. Tapestry | MYT Netherlands vs. Capri Holdings |
| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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