Correlation Between Xcel Brands and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Xcel Brands and Oxford Industries 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 Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and Oxford Industries, you can compare the effects of market volatilities on Xcel Brands and Oxford Industries 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 Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and Oxford Industries.
Diversification Opportunities for Xcel Brands and Oxford Industries
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xcel and Oxford is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries 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 Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of Xcel Brands i.e., Xcel Brands and Oxford Industries go up and down completely randomly.
Pair Corralation between Xcel Brands and Oxford Industries
Given the investment horizon of 90 days Xcel Brands is expected to under-perform the Oxford Industries. In addition to that, Xcel Brands is 1.31 times more volatile than Oxford Industries. It trades about -0.25 of its total potential returns per unit of risk. Oxford Industries is currently generating about 0.21 per unit of volatility. If you would invest 7,548 in Oxford Industries on August 30, 2024 and sell it today you would earn a total of 749.00 from holding Oxford Industries or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xcel Brands vs. Oxford Industries
Performance |
| Timeline |
| Xcel Brands |
| Oxford Industries |
Xcel Brands and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and Oxford Industries
The main advantage of trading using opposite Xcel Brands and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' 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 |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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