Correlation Between Xcel Brands and Ermenegildo Zegna
Can any of the company-specific risk be diversified away by investing in both Xcel Brands and Ermenegildo Zegna 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 Ermenegildo Zegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and Ermenegildo Zegna NV, you can compare the effects of market volatilities on Xcel Brands and Ermenegildo Zegna 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 Ermenegildo Zegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and Ermenegildo Zegna.
Diversification Opportunities for Xcel Brands and Ermenegildo Zegna
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xcel and Ermenegildo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands and Ermenegildo Zegna NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ermenegildo Zegna 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 Ermenegildo Zegna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ermenegildo Zegna has no effect on the direction of Xcel Brands i.e., Xcel Brands and Ermenegildo Zegna go up and down completely randomly.
Pair Corralation between Xcel Brands and Ermenegildo Zegna
Given the investment horizon of 90 days Xcel Brands is expected to under-perform the Ermenegildo Zegna. In addition to that, Xcel Brands is 1.02 times more volatile than Ermenegildo Zegna NV. It trades about -0.33 of its total potential returns per unit of risk. Ermenegildo Zegna NV is currently generating about 0.2 per unit of volatility. If you would invest 792.00 in Ermenegildo Zegna NV on November 8, 2024 and sell it today you would earn a total of 105.00 from holding Ermenegildo Zegna NV or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xcel Brands vs. Ermenegildo Zegna NV
Performance |
| Timeline |
| Xcel Brands |
| Ermenegildo Zegna |
Xcel Brands and Ermenegildo Zegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and Ermenegildo Zegna
The main advantage of trading using opposite Xcel Brands and Ermenegildo Zegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands position performs unexpectedly, Ermenegildo Zegna 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 Ermenegildo Zegna will offset losses from the drop in Ermenegildo Zegna's 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 |
| Ermenegildo Zegna vs. Oxford Industries | Ermenegildo Zegna vs. G III Apparel Group | Ermenegildo Zegna vs. Kontoor Brands | Ermenegildo Zegna 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |