Correlation Between American Eagle and Sothebys
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By analyzing existing cross correlation between American Eagle Outfitters and Sothebys 7375 percent, you can compare the effects of market volatilities on American Eagle and Sothebys 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 American Eagle with a short position of Sothebys. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and Sothebys.
Diversification Opportunities for American Eagle and Sothebys
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and Sothebys is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and Sothebys 7375 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sothebys 7375 percent and American Eagle 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 American Eagle Outfitters are associated (or correlated) with Sothebys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sothebys 7375 percent has no effect on the direction of American Eagle i.e., American Eagle and Sothebys go up and down completely randomly.
Pair Corralation between American Eagle and Sothebys
Considering the 90-day investment horizon American Eagle Outfitters is expected to generate 2.31 times more return on investment than Sothebys. However, American Eagle is 2.31 times more volatile than Sothebys 7375 percent. It trades about 0.02 of its potential returns per unit of risk. Sothebys 7375 percent is currently generating about 0.0 per unit of risk. If you would invest 1,464 in American Eagle Outfitters on September 25, 2024 and sell it today you would earn a total of 180.00 from holding American Eagle Outfitters or generate 12.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 90.54% |
Values | Daily Returns |
American Eagle Outfitters vs. Sothebys 7375 percent
Performance |
Timeline |
American Eagle Outfitters |
Sothebys 7375 percent |
American Eagle and Sothebys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Eagle and Sothebys
The main advantage of trading using opposite American Eagle and Sothebys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, Sothebys 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 Sothebys will offset losses from the drop in Sothebys' long position.American Eagle vs. Macys Inc | American Eagle vs. Wayfair | American Eagle vs. 1StdibsCom | American Eagle vs. AutoNation |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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