Correlation Between Urban Outfitters and L Brands
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters 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 Urban Outfitters and L Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and L Brands, you can compare the effects of market volatilities on Urban Outfitters 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 Urban Outfitters with a short position of L Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and L Brands.
Diversification Opportunities for Urban Outfitters and L Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Urban and L Brands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and L Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Brands and Urban Outfitters 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 Urban Outfitters 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 Urban Outfitters i.e., Urban Outfitters and L Brands go up and down completely randomly.
Pair Corralation between Urban Outfitters and L Brands
If you would invest 3,903 in Urban Outfitters on January 25, 2024 and sell it today you would earn a total of 33.00 from holding Urban Outfitters or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Urban Outfitters vs. L Brands
Performance |
| Timeline |
| Urban Outfitters |
| L Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Urban Outfitters and L Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and L Brands
The main advantage of trading using opposite Urban Outfitters and L Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters 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.| Urban Outfitters vs. American Eagle Outfitters | Urban Outfitters vs. Gap Inc | Urban Outfitters vs. Foot Locker | Urban Outfitters vs. Childrens Place |
| L Brands vs. SEI Investments | L Brands vs. Skillful Craftsman Education | L Brands vs. Lindblad Expeditions Holdings | L Brands vs. TFI International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |