Correlation Between Urban Outfitters and SP Global
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and SP Global 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 SP Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and SP Global, you can compare the effects of market volatilities on Urban Outfitters and SP Global 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 SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and SP Global.
Diversification Opportunities for Urban Outfitters and SP Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Urban and SPGI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global 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 SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and SP Global go up and down completely randomly.
Pair Corralation between Urban Outfitters and SP Global
Given the investment horizon of 90 days Urban Outfitters is expected to generate 2.24 times more return on investment than SP Global. However, Urban Outfitters is 2.24 times more volatile than SP Global. It trades about 0.07 of its potential returns per unit of risk. SP Global is currently generating about 0.08 per unit of risk. If you would invest 2,649 in Urban Outfitters on November 9, 2024 and sell it today you would earn a total of 3,111 from holding Urban Outfitters or generate 117.44% 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. SP Global
Performance |
| Timeline |
| Urban Outfitters |
| SP Global |
Urban Outfitters and SP Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and SP Global
The main advantage of trading using opposite Urban Outfitters and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, SP Global 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 SP Global will offset losses from the drop in SP Global's long position.| Urban Outfitters vs. American Eagle Outfitters | Urban Outfitters vs. Foot Locker | Urban Outfitters vs. Childrens Place | Urban Outfitters vs. Abercrombie Fitch |
| SP Global vs. MSCI Inc | SP Global vs. Nasdaq Inc | SP Global vs. Intercontinental Exchange | SP Global vs. CME 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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