Correlation Between ASICS and American Rebel
Can any of the company-specific risk be diversified away by investing in both ASICS and American Rebel 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 ASICS and American Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASICS and American Rebel Holdings, you can compare the effects of market volatilities on ASICS and American Rebel 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 ASICS with a short position of American Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASICS and American Rebel.
Diversification Opportunities for ASICS and American Rebel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASICS and American is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ASICS and American Rebel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Rebel Holdings and ASICS 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 ASICS are associated (or correlated) with American Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Rebel Holdings has no effect on the direction of ASICS i.e., ASICS and American Rebel go up and down completely randomly.
Pair Corralation between ASICS and American Rebel
Assuming the 90 days horizon ASICS is expected to under-perform the American Rebel. But the pink sheet apears to be less risky and, when comparing its historical volatility, ASICS is 7.02 times less risky than American Rebel. The pink sheet trades about -0.37 of its potential returns per unit of risk. The American Rebel Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.92 in American Rebel Holdings on August 28, 2024 and sell it today you would lose (0.10) from holding American Rebel Holdings or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
ASICS vs. American Rebel Holdings
Performance |
| Timeline |
| ASICS |
| American Rebel Holdings |
ASICS and American Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASICS and American Rebel
The main advantage of trading using opposite ASICS and American Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASICS position performs unexpectedly, American Rebel 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 American Rebel will offset losses from the drop in American Rebel's long position.| ASICS vs. American Rebel Holdings | ASICS vs. American Rebel Holdings | ASICS vs. Crocs Inc | ASICS vs. On Holding |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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