Correlation Between Amer Sports, and Rocky Brands
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Rocky Brands 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 Rocky Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Rocky Brands, you can compare the effects of market volatilities on Amer Sports, and Rocky Brands 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 Rocky Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Rocky Brands.
Diversification Opportunities for Amer Sports, and Rocky Brands
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and Rocky is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Rocky Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocky Brands 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 Rocky Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocky Brands has no effect on the direction of Amer Sports, i.e., Amer Sports, and Rocky Brands go up and down completely randomly.
Pair Corralation between Amer Sports, and Rocky Brands
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 0.65 times more return on investment than Rocky Brands. However, Amer Sports, is 1.53 times less risky than Rocky Brands. It trades about 0.42 of its potential returns per unit of risk. Rocky Brands is currently generating about -0.14 per unit of risk. If you would invest 1,822 in Amer Sports, on August 30, 2024 and sell it today you would earn a total of 765.00 from holding Amer Sports, or generate 41.99% 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. Rocky Brands
Performance |
| Timeline |
| Amer Sports, |
| Rocky Brands |
Amer Sports, and Rocky Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Rocky Brands
The main advantage of trading using opposite Amer Sports, and Rocky Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Rocky Brands 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 Rocky Brands will offset losses from the drop in Rocky Brands' long position.| Amer Sports, vs. Ryanair Holdings PLC | Amer Sports, vs. Kaltura | Amer Sports, vs. Mayfair Gold Corp | Amer Sports, vs. NETGEAR |
| Rocky Brands vs. Steven Madden | Rocky Brands vs. Caleres | Rocky Brands vs. Weyco Group | Rocky Brands vs. Designer Brands |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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