Correlation Between Amer Sports, and Malibu Boats
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Malibu Boats 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 Malibu Boats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Malibu Boats, you can compare the effects of market volatilities on Amer Sports, and Malibu Boats 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 Malibu Boats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Malibu Boats.
Diversification Opportunities for Amer Sports, and Malibu Boats
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amer and Malibu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats 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 Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of Amer Sports, i.e., Amer Sports, and Malibu Boats go up and down completely randomly.
Pair Corralation between Amer Sports, and Malibu Boats
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 0.86 times more return on investment than Malibu Boats. However, Amer Sports, is 1.16 times less risky than Malibu Boats. It trades about 0.27 of its potential returns per unit of risk. Malibu Boats is currently generating about -0.37 per unit of risk. If you would invest 2,551 in Amer Sports, on September 24, 2024 and sell it today you would earn a total of 305.00 from holding Amer Sports, or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Sports, vs. Malibu Boats
Performance |
| Timeline |
| Amer Sports, |
| Malibu Boats |
Amer Sports, and Malibu Boats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Malibu Boats
The main advantage of trading using opposite Amer Sports, and Malibu Boats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Malibu Boats 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 Malibu Boats will offset losses from the drop in Malibu Boats' long position.| Amer Sports, vs. Westrock Coffee | Amer Sports, vs. Vita Coco | Amer Sports, vs. Forsys Metals Corp | Amer Sports, vs. Highway Holdings Limited |
| Malibu Boats vs. Amer Sports, | Malibu Boats vs. Ralph Lauren Corp | Malibu Boats vs. Under Armour C | Malibu Boats vs. Dogness International Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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