Correlation Between Amer Sports, and UMAX Group
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and UMAX Group 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 UMAX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and UMAX Group Corp, you can compare the effects of market volatilities on Amer Sports, and UMAX Group 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 UMAX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and UMAX Group.
Diversification Opportunities for Amer Sports, and UMAX Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and UMAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and UMAX Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMAX Group Corp 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 UMAX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMAX Group Corp has no effect on the direction of Amer Sports, i.e., Amer Sports, and UMAX Group go up and down completely randomly.
Pair Corralation between Amer Sports, and UMAX Group
If you would invest 2,885 in Amer Sports, on November 2, 2024 and sell it today you would earn a total of 493.00 from holding Amer Sports, or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Sports, vs. UMAX Group Corp
Performance |
| Timeline |
| Amer Sports, |
| UMAX Group Corp |
Amer Sports, and UMAX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and UMAX Group
The main advantage of trading using opposite Amer Sports, and UMAX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, UMAX Group 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 UMAX Group will offset losses from the drop in UMAX Group's long position.| Amer Sports, vs. JBG SMITH Properties | Amer Sports, vs. Invitation Homes | Amer Sports, vs. HomeStreet | Amer Sports, vs. BW Offshore 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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