Correlation Between Apex Global and Designer Brands

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Can any of the company-specific risk be diversified away by investing in both Apex Global and Designer 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 Apex Global and Designer Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Global Brands and Designer Brands, you can compare the effects of market volatilities on Apex Global and Designer 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 Apex Global with a short position of Designer Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Global and Designer Brands.

Diversification Opportunities for Apex Global and Designer Brands

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Apex and Designer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Global Brands and Designer Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Designer Brands and Apex Global 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 Apex Global Brands are associated (or correlated) with Designer Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Designer Brands has no effect on the direction of Apex Global i.e., Apex Global and Designer Brands go up and down completely randomly.

Pair Corralation between Apex Global and Designer Brands

If you would invest (100.00) in Apex Global Brands on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Apex Global Brands or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Apex Global Brands  vs.  Designer Brands

 Performance 
       Timeline  
Apex Global Brands 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Apex Global Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Apex Global is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Designer Brands 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Designer Brands are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental drivers, Designer Brands demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Apex Global and Designer Brands Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apex Global and Designer Brands

The main advantage of trading using opposite Apex Global and Designer Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Global position performs unexpectedly, Designer 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 Designer Brands will offset losses from the drop in Designer Brands' long position.
The idea behind Apex Global Brands and Designer Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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