Correlation Between NYSE Composite and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Oxford Industries, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Oxford Industries.
Diversification Opportunities for NYSE Composite and Oxford Industries
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Oxford is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Oxford Industries go up and down completely randomly.
Pair Corralation between NYSE Composite and Oxford Industries
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.34 times more return on investment than Oxford Industries. However, NYSE Composite is 2.94 times less risky than Oxford Industries. It trades about 0.14 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.02 per unit of risk. If you would invest 1,608,884 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 403,461 from holding NYSE Composite or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Oxford Industries
Performance |
| Timeline |
NYSE Composite and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Oxford Industries
Pair trading matchups for Oxford Industries
Pair Trading with NYSE Composite and Oxford Industries
The main advantage of trading using opposite NYSE Composite and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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