Correlation Between Naked Brand and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Naked Brand and Oxford Industries 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 Oxford Industries 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 Oxford Industries, you can compare the effects of market volatilities on Naked Brand and Oxford Industries 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 Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Brand and Oxford Industries.
Diversification Opportunities for Naked Brand and Oxford Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Brand Group and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries 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 Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of Naked Brand i.e., Naked Brand and Oxford Industries go up and down completely randomly.
Pair Corralation between Naked Brand and Oxford Industries
If you would invest 8,487 in Oxford Industries on December 30, 2023 and sell it today you would earn a total of 2,753 from holding Oxford Industries or generate 32.44% 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. Oxford Industries
Performance |
Timeline |
Naked Brand Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Oxford Industries |
Naked Brand and Oxford Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Naked Brand and Oxford Industries
The main advantage of trading using opposite Naked Brand and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Brand position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.Naked Brand vs. ASML Holding NV | Naked Brand vs. Shake Shack | Naked Brand vs. MACOM Technology Solutions | Naked Brand vs. NLIGHT Inc |
Oxford Industries vs. Vince Holding Corp | Oxford Industries vs. Figs Inc | Oxford Industries vs. Delta Apparel | Oxford Industries vs. Xcel Brands |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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