Correlation Between Apex Global and L Brands
Can any of the company-specific risk be diversified away by investing in both Apex Global and L 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 L 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 L Brands, you can compare the effects of market volatilities on Apex Global and L 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 L Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Global and L Brands.
Diversification Opportunities for Apex Global and L Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apex and L Brands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Global Brands and L Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L 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 L Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Brands has no effect on the direction of Apex Global i.e., Apex Global and L Brands go up and down completely randomly.
Pair Corralation between Apex Global and L Brands
If you would invest (100.00) in L Brands on January 20, 2024 and sell it today you would earn a total of 100.00 from holding L Brands 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. L Brands
Performance |
| Timeline |
| Apex Global Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| L Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apex Global and L Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Global and L Brands
The main advantage of trading using opposite Apex Global and L Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Global position performs unexpectedly, L 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 L Brands will offset losses from the drop in L Brands' long position.| Apex Global vs. Chiba Bank Ltd | Apex Global vs. Griffon | Apex Global vs. Newpark Resources | Apex Global vs. KeyCorp |
| L Brands vs. The Cheesecake Factory | L Brands vs. Diamond Offshore Drilling | L Brands vs. Repligen | L Brands vs. BJs Restaurants |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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