Correlation Between Urban Outfitters and Reitmans (Canada)
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and Reitmans (Canada) 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 Reitmans (Canada) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and Reitmans Limited, you can compare the effects of market volatilities on Urban Outfitters and Reitmans (Canada) 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 Reitmans (Canada). Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and Reitmans (Canada).
Diversification Opportunities for Urban Outfitters and Reitmans (Canada)
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Urban and Reitmans is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans (Canada) 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 Reitmans (Canada). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans (Canada) has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and Reitmans (Canada) go up and down completely randomly.
Pair Corralation between Urban Outfitters and Reitmans (Canada)
Given the investment horizon of 90 days Urban Outfitters is expected to generate 5.59 times more return on investment than Reitmans (Canada). However, Urban Outfitters is 5.59 times more volatile than Reitmans Limited. It trades about 0.25 of its potential returns per unit of risk. Reitmans Limited is currently generating about 0.22 per unit of risk. If you would invest 3,681 in Urban Outfitters on August 28, 2024 and sell it today you would earn a total of 365.00 from holding Urban Outfitters or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Outfitters vs. Reitmans Limited
Performance |
| Timeline |
| Urban Outfitters |
| Reitmans (Canada) |
Urban Outfitters and Reitmans (Canada) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and Reitmans (Canada)
The main advantage of trading using opposite Urban Outfitters and Reitmans (Canada) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, Reitmans (Canada) 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 Reitmans (Canada) will offset losses from the drop in Reitmans (Canada)'s long position.| Urban Outfitters vs. American Eagle Outfitters | Urban Outfitters vs. Foot Locker | Urban Outfitters vs. Childrens Place | Urban Outfitters vs. Abercrombie Fitch |
| Reitmans (Canada) vs. NEXT plc | Reitmans (Canada) vs. Reitmans Limited | Reitmans (Canada) vs. Lulus Fashion Lounge | Reitmans (Canada) vs. Duluth Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |