Correlation Between Steven Madden and 06051GHX0
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By analyzing existing cross correlation between Steven Madden and BANK OF AMERICA, you can compare the effects of market volatilities on Steven Madden and 06051GHX0 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 06051GHX0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and 06051GHX0.
Diversification Opportunities for Steven Madden and 06051GHX0
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Steven and 06051GHX0 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and BANK OF AMERICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF AMERICA 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 06051GHX0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF AMERICA has no effect on the direction of Steven Madden i.e., Steven Madden and 06051GHX0 go up and down completely randomly.
Pair Corralation between Steven Madden and 06051GHX0
Given the investment horizon of 90 days Steven Madden is expected to generate 2.49 times more return on investment than 06051GHX0. However, Steven Madden is 2.49 times more volatile than BANK OF AMERICA. It trades about 0.05 of its potential returns per unit of risk. BANK OF AMERICA is currently generating about -0.13 per unit of risk. If you would invest 4,376 in Steven Madden on September 4, 2024 and sell it today you would earn a total of 225.00 from holding Steven Madden or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Steven Madden vs. BANK OF AMERICA
Performance |
| Timeline |
| Steven Madden |
| BANK OF AMERICA |
Steven Madden and 06051GHX0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and 06051GHX0
The main advantage of trading using opposite Steven Madden and 06051GHX0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, 06051GHX0 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 06051GHX0 will offset losses from the drop in 06051GHX0's long position.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| 06051GHX0 vs. Nike Inc | 06051GHX0 vs. TFI International | 06051GHX0 vs. Sun Country Airlines | 06051GHX0 vs. Steven Madden |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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