Correlation Between Amer Sports, and Emerson Radio
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Emerson Radio 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 Emerson Radio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Emerson Radio, you can compare the effects of market volatilities on Amer Sports, and Emerson Radio 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 Emerson Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Emerson Radio.
Diversification Opportunities for Amer Sports, and Emerson Radio
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amer and Emerson is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Emerson Radio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerson Radio 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 Emerson Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerson Radio has no effect on the direction of Amer Sports, i.e., Amer Sports, and Emerson Radio go up and down completely randomly.
Pair Corralation between Amer Sports, and Emerson Radio
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 1.07 times more return on investment than Emerson Radio. However, Amer Sports, is 1.07 times more volatile than Emerson Radio. It trades about 0.12 of its potential returns per unit of risk. Emerson Radio is currently generating about 0.0 per unit of risk. If you would invest 1,340 in Amer Sports, on September 13, 2024 and sell it today you would earn a total of 1,394 from holding Amer Sports, or generate 104.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 44.33% |
| Values | Daily Returns |
Amer Sports, vs. Emerson Radio
Performance |
| Timeline |
| Amer Sports, |
| Emerson Radio |
Amer Sports, and Emerson Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Emerson Radio
The main advantage of trading using opposite Amer Sports, and Emerson Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Emerson Radio 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 Emerson Radio will offset losses from the drop in Emerson Radio's long position.| Amer Sports, vs. Digital Brands Group | Amer Sports, vs. Data Storage | Amer Sports, vs. Auddia Inc | Amer Sports, vs. DatChat Series A |
| Emerson Radio vs. LG Display Co | Emerson Radio vs. Turtle Beach Corp | Emerson Radio vs. Sony Group Corp | Emerson Radio vs. Vuzix Corp Cmn |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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