Correlation Between Urban Outfitters and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and WAGNERS HOLDING 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 Urban Outfitters and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Urban Outfitters and WAGNERS HOLDING 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 Urban Outfitters with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and WAGNERS HOLDING.
Diversification Opportunities for Urban Outfitters and WAGNERS HOLDING
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Urban and WAGNERS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and Urban Outfitters 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 Urban Outfitters are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Urban Outfitters and WAGNERS HOLDING
Assuming the 90 days horizon Urban Outfitters is expected to generate 1.88 times more return on investment than WAGNERS HOLDING. However, Urban Outfitters is 1.88 times more volatile than WAGNERS HOLDING LTD. It trades about 0.34 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.07 per unit of risk. If you would invest 4,940 in Urban Outfitters on October 14, 2024 and sell it today you would earn a total of 610.00 from holding Urban Outfitters or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Outfitters vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Urban Outfitters |
| WAGNERS HOLDING LTD |
Urban Outfitters and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and WAGNERS HOLDING
The main advantage of trading using opposite Urban Outfitters and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| Urban Outfitters vs. HK Electric Investments | Urban Outfitters vs. Australian Agricultural | Urban Outfitters vs. Treasury Wine Estates | Urban Outfitters vs. Sterling Construction |
| WAGNERS HOLDING vs. G III Apparel Group | WAGNERS HOLDING vs. ON SEMICONDUCTOR | WAGNERS HOLDING vs. 24SEVENOFFICE GROUP AB | WAGNERS HOLDING vs. Urban Outfitters |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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