Correlation Between USWE SPORTS and Cass Information
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and Cass Information 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 USWE SPORTS and Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Cass Information Systems, you can compare the effects of market volatilities on USWE SPORTS and Cass Information 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 USWE SPORTS with a short position of Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Cass Information.
Diversification Opportunities for USWE SPORTS and Cass Information
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and Cass is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and Cass Information go up and down completely randomly.
Pair Corralation between USWE SPORTS and Cass Information
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 1.29 times more return on investment than Cass Information. However, USWE SPORTS is 1.29 times more volatile than Cass Information Systems. It trades about 0.25 of its potential returns per unit of risk. Cass Information Systems is currently generating about -0.08 per unit of risk. If you would invest 74.00 in USWE SPORTS AB on October 26, 2024 and sell it today you would earn a total of 8.00 from holding USWE SPORTS AB or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. Cass Information Systems
Performance |
| Timeline |
| USWE SPORTS AB |
| Cass Information Systems |
USWE SPORTS and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Cass Information
The main advantage of trading using opposite USWE SPORTS and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| USWE SPORTS vs. Booking Holdings | USWE SPORTS vs. Oriental Land Co | USWE SPORTS vs. ANTA Sports Products | USWE SPORTS vs. Li Ning Company |
| Cass Information vs. INPOST SA EO | Cass Information vs. Elis SA | Cass Information vs. PARK24 LTD | Cass Information vs. RELO GROUP INC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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