Correlation Between Amer Sports, and Carters
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Carters 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 Amer Sports, and Carters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Carters, you can compare the effects of market volatilities on Amer Sports, and Carters 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 Amer Sports, with a short position of Carters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Carters.
Diversification Opportunities for Amer Sports, and Carters
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and Carters is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Carters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carters and Amer 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 Amer Sports, are associated (or correlated) with Carters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carters has no effect on the direction of Amer Sports, i.e., Amer Sports, and Carters go up and down completely randomly.
Pair Corralation between Amer Sports, and Carters
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 1.24 times more return on investment than Carters. However, Amer Sports, is 1.24 times more volatile than Carters. It trades about 0.33 of its potential returns per unit of risk. Carters is currently generating about -0.11 per unit of risk. If you would invest 1,595 in Amer Sports, on August 30, 2024 and sell it today you would earn a total of 992.00 from holding Amer Sports, or generate 62.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Sports, vs. Carters
Performance |
| Timeline |
| Amer Sports, |
| Carters |
Amer Sports, and Carters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Carters
The main advantage of trading using opposite Amer Sports, and Carters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Carters 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 Carters will offset losses from the drop in Carters' long position.| Amer Sports, vs. Cedar Realty Trust | Amer Sports, vs. Glacier Bancorp | Amer Sports, vs. ATRenew Inc DRC | Amer Sports, vs. Lululemon Athletica |
| Carters vs. VF Corporation | Carters vs. Levi Strauss Co | Carters vs. Under Armour A | Carters vs. Columbia Sportswear |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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