Correlation Between Urban Outfitters and Great Elm
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and Great Elm Capital, you can compare the effects of market volatilities on Urban Outfitters and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and Great Elm.
Diversification Opportunities for Urban Outfitters and Great Elm
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Urban and Great is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and Great Elm go up and down completely randomly.
Pair Corralation between Urban Outfitters and Great Elm
Given the investment horizon of 90 days Urban Outfitters is expected to generate 1.01 times more return on investment than Great Elm. However, Urban Outfitters is 1.01 times more volatile than Great Elm Capital. It trades about 0.06 of its potential returns per unit of risk. Great Elm Capital is currently generating about -0.16 per unit of risk. If you would invest 6,761 in Urban Outfitters on August 30, 2025 and sell it today you would earn a total of 646.00 from holding Urban Outfitters or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Outfitters vs. Great Elm Capital
Performance |
| Timeline |
| Urban Outfitters |
| Great Elm Capital |
Urban Outfitters and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Outfitters and Great Elm
The main advantage of trading using opposite Urban Outfitters and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Urban Outfitters vs. Talis Biomedical Corp | Urban Outfitters vs. Caribbean Utilities | Urban Outfitters vs. T Mobile US, 6250 | Urban Outfitters vs. Kestra Medical Technologies, |
| Great Elm vs. China Clean Energy | Great Elm vs. CleanTech Lithium Plc | Great Elm vs. Plaza Retail REIT | Great Elm vs. Day Tradexchange |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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