Correlation Between Amer Sports, and Sonoco Products
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Sonoco Products 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 Sonoco Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Sonoco Products, you can compare the effects of market volatilities on Amer Sports, and Sonoco Products 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 Sonoco Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Sonoco Products.
Diversification Opportunities for Amer Sports, and Sonoco Products
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amer and Sonoco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Sonoco Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonoco Products 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 Sonoco Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonoco Products has no effect on the direction of Amer Sports, i.e., Amer Sports, and Sonoco Products go up and down completely randomly.
Pair Corralation between Amer Sports, and Sonoco Products
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 2.49 times more return on investment than Sonoco Products. However, Amer Sports, is 2.49 times more volatile than Sonoco Products. It trades about 0.11 of its potential returns per unit of risk. Sonoco Products is currently generating about -0.01 per unit of risk. If you would invest 1,340 in Amer Sports, on September 2, 2024 and sell it today you would earn a total of 1,293 from holding Amer Sports, or generate 96.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.54% |
| Values | Daily Returns |
Amer Sports, vs. Sonoco Products
Performance |
| Timeline |
| Amer Sports, |
| Sonoco Products |
Amer Sports, and Sonoco Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Sonoco Products
The main advantage of trading using opposite Amer Sports, and Sonoco Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Sonoco Products 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 Sonoco Products will offset losses from the drop in Sonoco Products' long position.| Amer Sports, vs. Kaltura | Amer Sports, vs. FiscalNote Holdings | Amer Sports, vs. Cadence Design Systems | Amer Sports, vs. Asure Software |
| Sonoco Products vs. AptarGroup | Sonoco Products vs. Silgan Holdings | Sonoco Products vs. RPM International | Sonoco Products vs. Packaging Corp of |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |