Correlation Between URBAN OUTFITTERS and AGRICULTBK HADR/25

Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between URBAN OUTFITTERS and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on URBAN OUTFITTERS and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and AGRICULTBK HADR/25.

Diversification Opportunities for URBAN OUTFITTERS and AGRICULTBK HADR/25

-0.7

Correlation Coefficient

URBAN OUTFITTERS  AGRICULTBK HADR/25

Excellent diversification

The 3 months correlation between URBAN and AGRICULTBK is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of URBAN OUTFITTERS i.e., URBAN OUTFITTERS and AGRICULTBK HADR/25 go up and down completely randomly.

Pair Corralation between URBAN OUTFITTERS and AGRICULTBK HADR/25

Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to under-perform the AGRICULTBK HADR/25. In addition to that, URBAN OUTFITTERS is 1.58 times more volatile than AGRICULTBK HADR25 YC. It trades about -0.04 of its total potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.06 per unit of volatility. If you would invest  1,278  in AGRICULTBK HADR25 YC on December 30, 2024 and sell it today you would earn a total of  82.00  from holding AGRICULTBK HADR25 YC or generate 6.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

URBAN OUTFITTERS  vs.  AGRICULTBK HADR25 YC

URBAN OUTFITTERS

Risk-Adjusted Performance

Very Weak

Over the last 90 days URBAN OUTFITTERS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

AGRICULTBK HADR/25

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR/25 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with URBAN OUTFITTERS and AGRICULTBK HADR/25

The main advantage of trading using opposite URBAN OUTFITTERS and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.

The idea behind URBAN OUTFITTERS and AGRICULTBK HADR25 YC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.