Correlation Between Urban Outfitters and China Hongqiao
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and China Hongqiao 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 China Hongqiao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and China Hongqiao Group, you can compare the effects of market volatilities on Urban Outfitters and China Hongqiao 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 China Hongqiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and China Hongqiao.
Diversification Opportunities for Urban Outfitters and China Hongqiao
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Urban and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and China Hongqiao Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Hongqiao Group 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 China Hongqiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Hongqiao Group has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and China Hongqiao go up and down completely randomly.
Pair Corralation between Urban Outfitters and China Hongqiao
If you would invest 5,710 in Urban Outfitters on November 9, 2024 and sell it today you would earn a total of 50.00 from holding Urban Outfitters or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Urban Outfitters vs. China Hongqiao Group
Performance |
| Timeline |
| Urban Outfitters |
| China Hongqiao Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Urban Outfitters and China Hongqiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and China Hongqiao
The main advantage of trading using opposite Urban Outfitters and China Hongqiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, China Hongqiao 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 China Hongqiao will offset losses from the drop in China Hongqiao's long position.| Urban Outfitters vs. American Eagle Outfitters | Urban Outfitters vs. Foot Locker | Urban Outfitters vs. Childrens Place | Urban Outfitters vs. Abercrombie Fitch |
| China Hongqiao vs. Constellium Nv | China Hongqiao vs. Century Aluminum | China Hongqiao vs. Alcoa Corp | China Hongqiao vs. China Hongqiao Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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