Correlation Between Xcel Brands and IMedia Brands
Can any of the company-specific risk be diversified away by investing in both Xcel Brands and IMedia Brands 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 Xcel Brands and IMedia Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and IMedia Brands, you can compare the effects of market volatilities on Xcel Brands and IMedia Brands 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 Xcel Brands with a short position of IMedia Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and IMedia Brands.
Diversification Opportunities for Xcel Brands and IMedia Brands
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xcel and IMedia is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands and IMedia Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMedia Brands and Xcel Brands 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 Xcel Brands are associated (or correlated) with IMedia Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMedia Brands has no effect on the direction of Xcel Brands i.e., Xcel Brands and IMedia Brands go up and down completely randomly.
Pair Corralation between Xcel Brands and IMedia Brands
If you would invest 2.94 in IMedia Brands on August 28, 2024 and sell it today you would earn a total of 0.00 from holding IMedia Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Xcel Brands vs. IMedia Brands
Performance |
| Timeline |
| Xcel Brands |
| IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xcel Brands and IMedia Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and IMedia Brands
The main advantage of trading using opposite Xcel Brands and IMedia Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands position performs unexpectedly, IMedia Brands 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 IMedia Brands will offset losses from the drop in IMedia Brands' long position.| Xcel Brands vs. H M Hennes | Xcel Brands vs. Under Armour C | Xcel Brands vs. H M Hennes | Xcel Brands vs. Oxford Industries |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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