Correlation Between EOG Resources and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both EOG Resources and Hugo Boss 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 EOG Resources and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EOG Resources and Hugo Boss AG, you can compare the effects of market volatilities on EOG Resources and Hugo Boss 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 EOG Resources with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of EOG Resources and Hugo Boss.
Diversification Opportunities for EOG Resources and Hugo Boss
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EOG and Hugo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and EOG Resources 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 EOG Resources are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of EOG Resources i.e., EOG Resources and Hugo Boss go up and down completely randomly.
Pair Corralation between EOG Resources and Hugo Boss
Considering the 90-day investment horizon EOG Resources is expected to generate 0.46 times more return on investment than Hugo Boss. However, EOG Resources is 2.19 times less risky than Hugo Boss. It trades about 0.24 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.07 per unit of risk. If you would invest 12,485 in EOG Resources on January 20, 2024 and sell it today you would earn a total of 691.00 from holding EOG Resources or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EOG Resources vs. Hugo Boss AG
Performance |
| Timeline |
| EOG Resources |
| Hugo Boss AG |
EOG Resources and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EOG Resources and Hugo Boss
The main advantage of trading using opposite EOG Resources and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EOG Resources position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| EOG Resources vs. Pioneer Natural Resources | EOG Resources vs. Permian Resources | EOG Resources vs. Devon Energy | EOG Resources vs. Coterra Energy |
| Hugo Boss vs. JSC Halyk bank | Hugo Boss vs. GigaMedia | Hugo Boss vs. ZINC MEDIA GR | Hugo Boss vs. Chiba Bank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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