Correlation Between Xcel Brands and Workhorse
Can any of the company-specific risk be diversified away by investing in both Xcel Brands and Workhorse 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 Xcel Brands and Workhorse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and Workhorse Group, you can compare the effects of market volatilities on Xcel Brands and Workhorse 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 Xcel Brands with a short position of Workhorse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and Workhorse.
Diversification Opportunities for Xcel Brands and Workhorse
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xcel and Workhorse is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands and Workhorse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workhorse Group and Xcel Brands 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 Xcel Brands are associated (or correlated) with Workhorse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workhorse Group has no effect on the direction of Xcel Brands i.e., Xcel Brands and Workhorse go up and down completely randomly.
Pair Corralation between Xcel Brands and Workhorse
Given the investment horizon of 90 days Xcel Brands is expected to generate 1.01 times more return on investment than Workhorse. However, Xcel Brands is 1.01 times more volatile than Workhorse Group. It trades about -0.05 of its potential returns per unit of risk. Workhorse Group is currently generating about -0.06 per unit of risk. If you would invest 136.00 in Xcel Brands on August 29, 2025 and sell it today you would lose (45.00) from holding Xcel Brands or give up 33.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xcel Brands vs. Workhorse Group
Performance |
| Timeline |
| Xcel Brands |
| Workhorse Group |
Xcel Brands and Workhorse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and Workhorse
The main advantage of trading using opposite Xcel Brands and Workhorse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands position performs unexpectedly, Workhorse 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 Workhorse will offset losses from the drop in Workhorse's long position.| Xcel Brands vs. Puhui Wealth Investment | Xcel Brands vs. Host Hotels Resorts | Xcel Brands vs. Xenia Hotels Resorts | Xcel Brands vs. Origin Investment Corp |
| Workhorse vs. United Natural Foods | Workhorse vs. Fevertree Drinks Plc | Workhorse vs. Fernhill Beverage | Workhorse vs. Molson Coors Beverage |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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