Correlation Between Naked Brand and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Naked Brand and Canada Goose 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 Naked Brand and Canada Goose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Brand Group and Canada Goose Holdings, you can compare the effects of market volatilities on Naked Brand and Canada Goose 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 Naked Brand with a short position of Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Brand and Canada Goose.
Diversification Opportunities for Naked Brand and Canada Goose
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Canada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Brand Group and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and Naked Brand 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 Naked Brand Group are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Naked Brand i.e., Naked Brand and Canada Goose go up and down completely randomly.
Pair Corralation between Naked Brand and Canada Goose
If you would invest (100.00) in Naked Brand Group on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Naked Brand Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Naked Brand Group vs. Canada Goose Holdings
Performance |
| Timeline |
| Naked Brand Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canada Goose Holdings |
Naked Brand and Canada Goose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Brand and Canada Goose
The main advantage of trading using opposite Naked Brand and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Brand position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.| Naked Brand vs. Patterson UTI Energy | Naked Brand vs. Orbit Garant Drilling | Naked Brand vs. American Airlines Group | Naked Brand vs. Spirit Airlines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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