Correlation Between Ermenegildo Zegna and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Ermenegildo Zegna 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 Ermenegildo Zegna and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ermenegildo Zegna NV and Oxford Industries, you can compare the effects of market volatilities on Ermenegildo Zegna 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 Ermenegildo Zegna with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ermenegildo Zegna and Oxford Industries.
Diversification Opportunities for Ermenegildo Zegna and Oxford Industries
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ermenegildo and Oxford is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ermenegildo Zegna NV and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and Ermenegildo Zegna 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 Ermenegildo Zegna NV 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 Ermenegildo Zegna i.e., Ermenegildo Zegna and Oxford Industries go up and down completely randomly.
Pair Corralation between Ermenegildo Zegna and Oxford Industries
Considering the 90-day investment horizon Ermenegildo Zegna NV is expected to under-perform the Oxford Industries. In addition to that, Ermenegildo Zegna is 1.32 times more volatile than Oxford Industries. It trades about -0.01 of its total potential returns per unit of risk. Oxford Industries is currently generating about 0.01 per unit of volatility. If you would invest 8,590 in Oxford Industries on November 2, 2024 and sell it today you would earn a total of 39.00 from holding Oxford Industries or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ermenegildo Zegna NV vs. Oxford Industries
Performance |
| Timeline |
| Ermenegildo Zegna |
| Oxford Industries |
Ermenegildo Zegna and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ermenegildo Zegna and Oxford Industries
The main advantage of trading using opposite Ermenegildo Zegna and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ermenegildo Zegna 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.| Ermenegildo Zegna vs. Oxford Industries | Ermenegildo Zegna vs. G III Apparel Group | Ermenegildo Zegna vs. Kontoor Brands | Ermenegildo Zegna vs. Columbia Sportswear |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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