Correlation Between Amer Sports, and Miller Industries
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Miller Industries 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 Miller Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Miller Industries, you can compare the effects of market volatilities on Amer Sports, and Miller Industries 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 Miller Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Miller Industries.
Diversification Opportunities for Amer Sports, and Miller Industries
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amer and Miller is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Miller Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Industries 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 Miller Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Industries has no effect on the direction of Amer Sports, i.e., Amer Sports, and Miller Industries go up and down completely randomly.
Pair Corralation between Amer Sports, and Miller Industries
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 1.43 times more return on investment than Miller Industries. However, Amer Sports, is 1.43 times more volatile than Miller Industries. It trades about 0.13 of its potential returns per unit of risk. Miller Industries is currently generating about 0.02 per unit of risk. If you would invest 3,053 in Amer Sports, on November 9, 2024 and sell it today you would earn a total of 204.00 from holding Amer Sports, or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Amer Sports, vs. Miller Industries
Performance |
| Timeline |
| Amer Sports, |
| Miller Industries |
Amer Sports, and Miller Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Miller Industries
The main advantage of trading using opposite Amer Sports, and Miller Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Miller Industries 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 Miller Industries will offset losses from the drop in Miller Industries' long position.| Amer Sports, vs. Catalyst Metals Limited | Amer Sports, vs. Cabo Drilling Corp | Amer Sports, vs. Emerson Electric | Amer Sports, vs. Hurco Companies |
| Miller Industries vs. Dorman Products | Miller Industries vs. Standard Motor Products | Miller Industries vs. Motorcar Parts of | Miller Industries vs. Douglas Dynamics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance |