Correlation Between Kate Spade and Steven Madden
Can any of the company-specific risk be diversified away by investing in both Kate Spade and Steven Madden 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 Kate Spade and Steven Madden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kate Spade and Steven Madden, you can compare the effects of market volatilities on Kate Spade and Steven Madden 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 Kate Spade with a short position of Steven Madden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kate Spade and Steven Madden.
Diversification Opportunities for Kate Spade and Steven Madden
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kate and Steven is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kate Spade and Steven Madden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steven Madden and Kate Spade 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 Kate Spade are associated (or correlated) with Steven Madden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steven Madden has no effect on the direction of Kate Spade i.e., Kate Spade and Steven Madden go up and down completely randomly.
Pair Corralation between Kate Spade and Steven Madden
If you would invest (100.00) in Kate Spade on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Kate Spade 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 |
Kate Spade vs. Steven Madden
Performance |
| Timeline |
| Kate Spade |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Steven Madden |
Kate Spade and Steven Madden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kate Spade and Steven Madden
The main advantage of trading using opposite Kate Spade and Steven Madden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kate Spade position performs unexpectedly, Steven Madden 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 Steven Madden will offset losses from the drop in Steven Madden's long position.| Kate Spade vs. CAVA Group | Kate Spade vs. Duckhorn Portfolio | Kate Spade vs. Westrock Coffee | Kate Spade vs. Texas Roadhouse |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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