Correlation Between Urban Outfitters and Keck Seng
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and Keck Seng 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 Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and Keck Seng Investments, you can compare the effects of market volatilities on Urban Outfitters and Keck Seng 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 Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and Keck Seng.
Diversification Opportunities for Urban Outfitters and Keck Seng
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Urban and Keck is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments 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 Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and Keck Seng go up and down completely randomly.
Pair Corralation between Urban Outfitters and Keck Seng
Assuming the 90 days horizon Urban Outfitters is expected to under-perform the Keck Seng. But the stock apears to be less risky and, when comparing its historical volatility, Urban Outfitters is 1.26 times less risky than Keck Seng. The stock trades about -0.03 of its potential returns per unit of risk. The Keck Seng Investments is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Keck Seng Investments on November 6, 2024 and sell it today you would earn a total of 0.00 from holding Keck Seng Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Outfitters vs. Keck Seng Investments
Performance |
| Timeline |
| Urban Outfitters |
| Keck Seng Investments |
Urban Outfitters and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and Keck Seng
The main advantage of trading using opposite Urban Outfitters and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| Urban Outfitters vs. The TJX Companies | Urban Outfitters vs. Fast Retailing Co | Urban Outfitters vs. Lululemon Athletica | Urban Outfitters vs. The Gap |
| Keck Seng vs. FIREWEED METALS P | Keck Seng vs. MCEWEN MINING INC | Keck Seng vs. Cleanaway Waste Management | Keck Seng vs. ADRIATIC METALS LS 013355 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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