Correlation Between Apex Global and Francescas Holdings
Can any of the company-specific risk be diversified away by investing in both Apex Global and Francescas Holdings 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 Francescas Holdings 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 Francescas Holdings, you can compare the effects of market volatilities on Apex Global and Francescas Holdings 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 Francescas Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Global and Francescas Holdings.
Diversification Opportunities for Apex Global and Francescas Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apex and Francescas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Global Brands and Francescas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Francescas Holdings 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 Francescas Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Francescas Holdings has no effect on the direction of Apex Global i.e., Apex Global and Francescas Holdings go up and down completely randomly.
Pair Corralation between Apex Global and Francescas Holdings
If you would invest (100.00) in Francescas Holdings on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Francescas Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Global Brands vs. Francescas Holdings
Performance |
| Timeline |
| Apex Global Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Francescas Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apex Global and Francescas Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Global and Francescas Holdings
The main advantage of trading using opposite Apex Global and Francescas Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Global position performs unexpectedly, Francescas Holdings 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 Francescas Holdings will offset losses from the drop in Francescas Holdings' long position.| Apex Global vs. Jeld Wen Holding | Apex Global vs. American Eagle Outfitters | Apex Global vs. Nike Inc | Apex Global vs. Ross Stores |
| Francescas Holdings vs. National Rural Utilities | Francescas Holdings vs. Silvercrest Asset Management | Francescas Holdings vs. LanzaTech Global | Francescas Holdings vs. Aris Water Solutions |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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