Correlation Between Oxford Industries and Forward Industries
Can any of the company-specific risk be diversified away by investing in both Oxford Industries and Forward 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 Oxford Industries and Forward Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Industries and Forward Industries, you can compare the effects of market volatilities on Oxford Industries and Forward 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 Oxford Industries with a short position of Forward Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Industries and Forward Industries.
Diversification Opportunities for Oxford Industries and Forward Industries
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxford and Forward is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Industries and Forward Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forward Industries and Oxford Industries 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 Oxford Industries are associated (or correlated) with Forward Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forward Industries has no effect on the direction of Oxford Industries i.e., Oxford Industries and Forward Industries go up and down completely randomly.
Pair Corralation between Oxford Industries and Forward Industries
Considering the 90-day investment horizon Oxford Industries is expected to under-perform the Forward Industries. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Industries is 4.34 times less risky than Forward Industries. The stock trades about -0.03 of its potential returns per unit of risk. The Forward Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 373.00 in Forward Industries on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Forward Industries or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Industries vs. Forward Industries
Performance |
| Timeline |
| Oxford Industries |
| Forward Industries |
Oxford Industries and Forward Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Industries and Forward Industries
The main advantage of trading using opposite Oxford Industries and Forward Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Industries position performs unexpectedly, Forward 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 Forward Industries will offset losses from the drop in Forward Industries' long position.| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
| Forward Industries vs. Crocs Inc | Forward Industries vs. On Holding | Forward Industries vs. Deckers Outdoor | Forward Industries vs. Adidas AG ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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