Correlation Between Apex Global and NEXT Plc
Can any of the company-specific risk be diversified away by investing in both Apex Global and NEXT Plc 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 NEXT Plc 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 NEXT plc, you can compare the effects of market volatilities on Apex Global and NEXT Plc 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 NEXT Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Global and NEXT Plc.
Diversification Opportunities for Apex Global and NEXT Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apex and NEXT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Global Brands and NEXT plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXT plc 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 NEXT Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXT plc has no effect on the direction of Apex Global i.e., Apex Global and NEXT Plc go up and down completely randomly.
Pair Corralation between Apex Global and NEXT Plc
If you would invest 10,650 in NEXT plc on January 19, 2024 and sell it today you would earn a total of 0.00 from holding NEXT plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Apex Global Brands vs. NEXT plc
Performance |
| Timeline |
| Apex Global Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NEXT plc |
Apex Global and NEXT Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Global and NEXT Plc
The main advantage of trading using opposite Apex Global and NEXT Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Global position performs unexpectedly, NEXT Plc 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 NEXT Plc will offset losses from the drop in NEXT Plc's long position.| Apex Global vs. Jeld Wen Holding | Apex Global vs. American Eagle Outfitters | Apex Global vs. Nike Inc | Apex Global vs. Ross Stores |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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