Correlation Between Steven Madden and TenX Keane
Can any of the company-specific risk be diversified away by investing in both Steven Madden and TenX Keane 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 Steven Madden and TenX Keane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steven Madden and TenX Keane Acquisition, you can compare the effects of market volatilities on Steven Madden and TenX Keane 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 Steven Madden with a short position of TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and TenX Keane.
Diversification Opportunities for Steven Madden and TenX Keane
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steven and TenX is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition and Steven Madden 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 Steven Madden are associated (or correlated) with TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of Steven Madden i.e., Steven Madden and TenX Keane go up and down completely randomly.
Pair Corralation between Steven Madden and TenX Keane
Given the investment horizon of 90 days Steven Madden is expected to generate 9.54 times less return on investment than TenX Keane. But when comparing it to its historical volatility, Steven Madden is 11.11 times less risky than TenX Keane. It trades about 0.05 of its potential returns per unit of risk. TenX Keane Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,121 in TenX Keane Acquisition on September 14, 2024 and sell it today you would lose (1,121) from holding TenX Keane Acquisition or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.4% |
| Values | Daily Returns |
Steven Madden vs. TenX Keane Acquisition
Performance |
| Timeline |
| Steven Madden |
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steven Madden and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and TenX Keane
The main advantage of trading using opposite Steven Madden and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane's long position.| Steven Madden vs. Deckers Outdoor | Steven Madden vs. On Holding | Steven Madden vs. Crocs Inc | Steven Madden vs. Designer Brands |
| TenX Keane vs. PepsiCo | TenX Keane vs. Steven Madden | TenX Keane vs. European Wax Center | TenX Keane vs. Beauty Health Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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