Correlation Between American Rebel and Samsonite International
Can any of the company-specific risk be diversified away by investing in both American Rebel and Samsonite International 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 Rebel and Samsonite International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Rebel Holdings and Samsonite International SA, you can compare the effects of market volatilities on American Rebel and Samsonite International 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 Rebel with a short position of Samsonite International. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Samsonite International.
Diversification Opportunities for American Rebel and Samsonite International
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Samsonite is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Samsonite International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsonite International and American Rebel 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 Rebel Holdings are associated (or correlated) with Samsonite International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsonite International has no effect on the direction of American Rebel i.e., American Rebel and Samsonite International go up and down completely randomly.
Pair Corralation between American Rebel and Samsonite International
Given the investment horizon of 90 days American Rebel Holdings is expected to generate 5.63 times more return on investment than Samsonite International. However, American Rebel is 5.63 times more volatile than Samsonite International SA. It trades about 0.04 of its potential returns per unit of risk. Samsonite International SA is currently generating about -0.06 per unit of risk. If you would invest 338.00 in American Rebel Holdings on August 27, 2024 and sell it today you would lose (114.00) from holding American Rebel Holdings or give up 33.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Rebel Holdings vs. Samsonite International SA
Performance |
| Timeline |
| American Rebel Holdings |
| Samsonite International |
American Rebel and Samsonite International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Rebel and Samsonite International
The main advantage of trading using opposite American Rebel and Samsonite International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel position performs unexpectedly, Samsonite International 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 Samsonite International will offset losses from the drop in Samsonite International's long position.| American Rebel vs. VF Corporation | American Rebel vs. Levi Strauss Co | American Rebel vs. Under Armour A | American Rebel vs. Oxford Industries |
| Samsonite International vs. American Rebel Holdings | Samsonite International vs. American Rebel Holdings | Samsonite International vs. Crocs Inc | Samsonite International vs. On Holding |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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