Correlation Between Ross Stores and Express
Can any of the company-specific risk be diversified away by investing in both Ross Stores 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 Ross Stores and Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Express, you can compare the effects of market volatilities on Ross Stores 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 Ross Stores with a short position of Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Express.
Diversification Opportunities for Ross Stores and Express
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ross and Express is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express and Ross Stores 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 Ross Stores 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 Ross Stores i.e., Ross Stores and Express go up and down completely randomly.
Pair Corralation between Ross Stores and Express
If you would invest 14,316 in Ross Stores on August 29, 2024 and sell it today you would earn a total of 1,173 from holding Ross Stores or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ross Stores vs. Express
Performance |
| Timeline |
| Ross Stores |
| Express |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ross Stores and Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and Express
The main advantage of trading using opposite Ross Stores and Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores 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.| Ross Stores vs. Burlington Stores | Ross Stores vs. American Eagle Outfitters | Ross Stores vs. Lululemon Athletica | Ross Stores vs. Foot Locker |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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