Correlation Between URBAN OUTFITTERS and Oxurion NV
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS and Oxurion NV 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 Oxurion NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and Oxurion NV, you can compare the effects of market volatilities on URBAN OUTFITTERS and Oxurion NV 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 Oxurion NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and Oxurion NV.
Diversification Opportunities for URBAN OUTFITTERS and Oxurion NV
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between URBAN and Oxurion is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and Oxurion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxurion NV 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 Oxurion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxurion NV has no effect on the direction of URBAN OUTFITTERS i.e., URBAN OUTFITTERS and Oxurion NV go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and Oxurion NV
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 1.94 times less return on investment than Oxurion NV. But when comparing it to its historical volatility, URBAN OUTFITTERS is 3.13 times less risky than Oxurion NV. It trades about 0.21 of its potential returns per unit of risk. Oxurion NV is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Oxurion NV on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Oxurion NV or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 21.74% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. Oxurion NV
Performance |
| Timeline |
| URBAN OUTFITTERS |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
URBAN OUTFITTERS and Oxurion NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and Oxurion NV
The main advantage of trading using opposite URBAN OUTFITTERS and Oxurion NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS position performs unexpectedly, Oxurion NV 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 Oxurion NV will offset losses from the drop in Oxurion NV's long position.| URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Superior Plus Corp | URBAN OUTFITTERS vs. SIVERS SEMICONDUCTORS AB |
| Oxurion NV vs. ScanSource | Oxurion NV vs. Check Point Software | Oxurion NV vs. ASURE SOFTWARE | Oxurion NV 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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