Correlation Between Lands End and Xcel Brands

Can any of the company-specific risk be diversified away by investing in both Lands End and Xcel Brands 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 Lands End and Xcel Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lands End and Xcel Brands, you can compare the effects of market volatilities on Lands End and Xcel Brands 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 Lands End with a short position of Xcel Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lands End and Xcel Brands.

Diversification Opportunities for Lands End and Xcel Brands

-0.79

Correlation Coefficient

Lands End  Xcel Brands

Pay attention - limited upside

The 3 months correlation between Lands and Xcel is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and Xcel Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xcel Brands and Lands End 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 Lands End are associated (or correlated) with Xcel Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xcel Brands has no effect on the direction of Lands End i.e., Lands End and Xcel Brands go up and down completely randomly.

Pair Corralation between Lands End and Xcel Brands

Allowing for the 90-day total investment horizon Lands End is expected to generate 0.77 times more return on investment than Xcel Brands. However, Lands End is 1.3 times less risky than Xcel Brands. It trades about 0.14 of its potential returns per unit of risk. Xcel Brands is currently generating about -0.2 per unit of risk. If you would invest  822.00  in Lands End on May 3, 2025 and sell it today you would earn a total of  331.00  from holding Lands End or generate 40.27% return on investment over 90 days.

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

Lands End  vs.  Xcel Brands

Lands End

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lands End are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Lands End exhibited solid returns over the last few months and may actually be approaching a breakup point.

Xcel Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xcel Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lands End and Xcel Brands

The main advantage of trading using opposite Lands End and Xcel Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, Xcel Brands 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 Xcel Brands will offset losses from the drop in Xcel Brands' long position.

The idea behind Lands End and Xcel Brands 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.