Correlation Between Oxford Industries and H M
Can any of the company-specific risk be diversified away by investing in both Oxford Industries and H M 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 H M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Industries and H M Hennes, you can compare the effects of market volatilities on Oxford Industries and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Industries and H M.
Diversification Opportunities for Oxford Industries and H M
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oxford and HMRZF is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Industries and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Oxford Industries i.e., Oxford Industries and H M go up and down completely randomly.
Pair Corralation between Oxford Industries and H M
Considering the 90-day investment horizon Oxford Industries is expected to generate 0.84 times more return on investment than H M. However, Oxford Industries is 1.18 times less risky than H M. It trades about 0.11 of its potential returns per unit of risk. H M Hennes is currently generating about -0.38 per unit of risk. If you would invest 7,489 in Oxford Industries on August 26, 2024 and sell it today you would earn a total of 291.00 from holding Oxford Industries or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Industries vs. H M Hennes
Performance |
| Timeline |
| Oxford Industries |
| H M Hennes |
Oxford Industries and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Industries and H M
The main advantage of trading using opposite Oxford Industries and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Industries position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's 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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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