Correlation Between Steven Madden and 49456BAW1
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By analyzing existing cross correlation between Steven Madden and KMI 545 01 AUG 52, you can compare the effects of market volatilities on Steven Madden and 49456BAW1 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 49456BAW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and 49456BAW1.
Diversification Opportunities for Steven Madden and 49456BAW1
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Steven and 49456BAW1 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and KMI 545 01 AUG 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMI 545 01 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 49456BAW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMI 545 01 has no effect on the direction of Steven Madden i.e., Steven Madden and 49456BAW1 go up and down completely randomly.
Pair Corralation between Steven Madden and 49456BAW1
Given the investment horizon of 90 days Steven Madden is expected to generate 1.79 times more return on investment than 49456BAW1. However, Steven Madden is 1.79 times more volatile than KMI 545 01 AUG 52. It trades about 0.05 of its potential returns per unit of risk. KMI 545 01 AUG 52 is currently generating about 0.01 per unit of risk. If you would invest 3,110 in Steven Madden on September 12, 2024 and sell it today you would earn a total of 1,242 from holding Steven Madden or generate 39.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
Steven Madden vs. KMI 545 01 AUG 52
Performance |
| Timeline |
| Steven Madden |
| KMI 545 01 |
Steven Madden and 49456BAW1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and 49456BAW1
The main advantage of trading using opposite Steven Madden and 49456BAW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, 49456BAW1 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 49456BAW1 will offset losses from the drop in 49456BAW1's long position.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| 49456BAW1 vs. Space Communication | 49456BAW1 vs. Zedge Inc | 49456BAW1 vs. Steven Madden | 49456BAW1 vs. National CineMedia |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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