Correlation Between Amer Sports, and Nova Lifestyle
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Nova Lifestyle 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 Nova Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Nova Lifestyle I, you can compare the effects of market volatilities on Amer Sports, and Nova Lifestyle 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 Nova Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Nova Lifestyle.
Diversification Opportunities for Amer Sports, and Nova Lifestyle
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and Nova is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Nova Lifestyle I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Lifestyle I 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 Nova Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Lifestyle I has no effect on the direction of Amer Sports, i.e., Amer Sports, and Nova Lifestyle go up and down completely randomly.
Pair Corralation between Amer Sports, and Nova Lifestyle
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 0.28 times more return on investment than Nova Lifestyle. However, Amer Sports, is 3.61 times less risky than Nova Lifestyle. It trades about 0.1 of its potential returns per unit of risk. Nova Lifestyle I is currently generating about 0.01 per unit of risk. If you would invest 1,340 in Amer Sports, on August 27, 2024 and sell it today you would earn a total of 1,090 from holding Amer Sports, or generate 81.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.07% |
| Values | Daily Returns |
Amer Sports, vs. Nova Lifestyle I
Performance |
| Timeline |
| Amer Sports, |
| Nova Lifestyle I |
Amer Sports, and Nova Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Nova Lifestyle
The main advantage of trading using opposite Amer Sports, and Nova Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Nova Lifestyle 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 Nova Lifestyle will offset losses from the drop in Nova Lifestyle's long position.| Amer Sports, vs. Transocean | Amer Sports, vs. Drilling Tools International | Amer Sports, vs. Centessa Pharmaceuticals PLC | Amer Sports, vs. Sonida Senior Living |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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