Correlation Between Steven Madden and PRIME
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By analyzing existing cross correlation between Steven Madden and PRIME SEC SVCS, you can compare the effects of market volatilities on Steven Madden and PRIME 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 PRIME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and PRIME.
Diversification Opportunities for Steven Madden and PRIME
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Steven and PRIME is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and PRIME SEC SVCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRIME SEC SVCS 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 PRIME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRIME SEC SVCS has no effect on the direction of Steven Madden i.e., Steven Madden and PRIME go up and down completely randomly.
Pair Corralation between Steven Madden and PRIME
Given the investment horizon of 90 days Steven Madden is expected to generate 0.92 times more return on investment than PRIME. However, Steven Madden is 1.09 times less risky than PRIME. It trades about -0.01 of its potential returns per unit of risk. PRIME SEC SVCS is currently generating about -0.21 per unit of risk. If you would invest 4,395 in Steven Madden on September 15, 2024 and sell it today you would lose (28.00) from holding Steven Madden or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Steven Madden vs. PRIME SEC SVCS
Performance |
| Timeline |
| Steven Madden |
| PRIME SEC SVCS |
Steven Madden and PRIME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and PRIME
The main advantage of trading using opposite Steven Madden and PRIME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, PRIME 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 PRIME will offset losses from the drop in PRIME's long position.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| PRIME vs. Ainsworth Game Technology | PRIME vs. Steven Madden | PRIME vs. Golden Matrix Group | PRIME vs. Victorias Secret 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 CEOs Directory module to screen CEOs from public companies around the world.
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