Correlation Between Amer Sports, and Superior Uniform
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Superior Uniform 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 Superior Uniform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Superior Uniform Group, you can compare the effects of market volatilities on Amer Sports, and Superior Uniform 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 Superior Uniform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Superior Uniform.
Diversification Opportunities for Amer Sports, and Superior Uniform
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amer and Superior is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Superior Uniform Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Uniform 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 Superior Uniform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Uniform has no effect on the direction of Amer Sports, i.e., Amer Sports, and Superior Uniform go up and down completely randomly.
Pair Corralation between Amer Sports, and Superior Uniform
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 1.46 times more return on investment than Superior Uniform. However, Amer Sports, is 1.46 times more volatile than Superior Uniform Group. It trades about 0.43 of its potential returns per unit of risk. Superior Uniform Group is currently generating about 0.22 per unit of risk. If you would invest 1,798 in Amer Sports, on August 28, 2024 and sell it today you would earn a total of 753.00 from holding Amer Sports, or generate 41.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Sports, vs. Superior Uniform Group
Performance |
| Timeline |
| Amer Sports, |
| Superior Uniform |
Amer Sports, and Superior Uniform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Superior Uniform
The main advantage of trading using opposite Amer Sports, and Superior Uniform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Superior Uniform 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 Superior Uniform will offset losses from the drop in Superior Uniform'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 |
| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |