Correlation Between American Outdoor and Vinco Ventures
Can any of the company-specific risk be diversified away by investing in both American Outdoor and Vinco Ventures 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 American Outdoor and Vinco Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Outdoor Brands and Vinco Ventures, you can compare the effects of market volatilities on American Outdoor and Vinco Ventures 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 American Outdoor with a short position of Vinco Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Outdoor and Vinco Ventures.
Diversification Opportunities for American Outdoor and Vinco Ventures
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Vinco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding American Outdoor Brands and Vinco Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinco Ventures and American Outdoor 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 American Outdoor Brands are associated (or correlated) with Vinco Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinco Ventures has no effect on the direction of American Outdoor i.e., American Outdoor and Vinco Ventures go up and down completely randomly.
Pair Corralation between American Outdoor and Vinco Ventures
If you would invest 780.00 in American Outdoor Brands on September 2, 2024 and sell it today you would earn a total of 201.00 from holding American Outdoor Brands or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
American Outdoor Brands vs. Vinco Ventures
Performance |
| Timeline |
| American Outdoor Brands |
| Vinco Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Outdoor and Vinco Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Outdoor and Vinco Ventures
The main advantage of trading using opposite American Outdoor and Vinco Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Outdoor position performs unexpectedly, Vinco Ventures 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 Vinco Ventures will offset losses from the drop in Vinco Ventures' long position.| American Outdoor vs. Clarus Corp | American Outdoor vs. Escalade Incorporated | American Outdoor vs. Johnson Outdoors | American Outdoor vs. JAKKS Pacific |
| Vinco Ventures vs. Planet Fitness | Vinco Ventures vs. Peloton Interactive | Vinco Ventures vs. Xponential Fitness | Vinco Ventures vs. Madison Square Garden |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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