Correlation Between Childrens Place and Express
Can any of the company-specific risk be diversified away by investing in both Childrens Place and Express 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 Childrens Place and Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Childrens Place and Express, you can compare the effects of market volatilities on Childrens Place and Express 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 Childrens Place with a short position of Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Childrens Place and Express.
Diversification Opportunities for Childrens Place and Express
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Childrens and Express is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Childrens Place and Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express and Childrens Place 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 Childrens Place are associated (or correlated) with Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Express has no effect on the direction of Childrens Place i.e., Childrens Place and Express go up and down completely randomly.
Pair Corralation between Childrens Place and Express
If you would invest 1,235 in Childrens Place on August 28, 2024 and sell it today you would earn a total of 368.00 from holding Childrens Place or generate 29.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Childrens Place vs. Express
Performance |
| Timeline |
| Childrens Place |
| Express |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Childrens Place and Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Childrens Place and Express
The main advantage of trading using opposite Childrens Place and Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Childrens Place position performs unexpectedly, Express 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 Express will offset losses from the drop in Express' long position.| Childrens Place vs. Ross Stores | Childrens Place vs. Buckle Inc | Childrens Place vs. Guess Inc | Childrens Place vs. Abercrombie Fitch |
| Express vs. Koss Corporation | Express vs. BlackBerry | Express vs. Castor Maritime | Express vs. Clover Health Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |