Correlation Between URBAN OUTFITTERS and Freenet AG
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By analyzing existing cross correlation between URBAN OUTFITTERS and freenet AG, you can compare the effects of market volatilities on URBAN OUTFITTERS and Freenet AG 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 Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and Freenet AG.
Diversification Opportunities for URBAN OUTFITTERS and Freenet AG
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between URBAN and Freenet is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG 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 Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of URBAN OUTFITTERS i.e., URBAN OUTFITTERS and Freenet AG go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and Freenet AG
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 2.49 times more return on investment than Freenet AG. However, URBAN OUTFITTERS is 2.49 times more volatile than freenet AG. It trades about 0.07 of its potential returns per unit of risk. freenet AG is currently generating about 0.09 per unit of risk. If you would invest 2,271 in URBAN OUTFITTERS on September 13, 2024 and sell it today you would earn a total of 2,629 from holding URBAN OUTFITTERS or generate 115.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. freenet AG
Performance |
| Timeline |
| URBAN OUTFITTERS |
| freenet AG |
URBAN OUTFITTERS and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and Freenet AG
The main advantage of trading using opposite URBAN OUTFITTERS and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.| URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc |
| Freenet AG vs. CENTURIA OFFICE REIT | Freenet AG vs. URBAN OUTFITTERS | Freenet AG vs. MI Homes | Freenet AG vs. LANDSEA HOMES P |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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