Correlation Between Asics Corp and Puma SE
Can any of the company-specific risk be diversified away by investing in both Asics Corp and Puma SE 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 Corp and Puma SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asics Corp ADR and Puma SE, you can compare the effects of market volatilities on Asics Corp and Puma SE 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 Corp with a short position of Puma SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asics Corp and Puma SE.
Diversification Opportunities for Asics Corp and Puma SE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asics and Puma is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Asics Corp ADR and Puma SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma SE and Asics Corp 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 Corp ADR are associated (or correlated) with Puma SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma SE has no effect on the direction of Asics Corp i.e., Asics Corp and Puma SE go up and down completely randomly.
Pair Corralation between Asics Corp and Puma SE
Assuming the 90 days horizon Asics Corp ADR is expected to generate 0.83 times more return on investment than Puma SE. However, Asics Corp ADR is 1.21 times less risky than Puma SE. It trades about 0.27 of its potential returns per unit of risk. Puma SE is currently generating about -0.04 per unit of risk. If you would invest 1,730 in Asics Corp ADR on August 28, 2024 and sell it today you would earn a total of 223.00 from holding Asics Corp ADR or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asics Corp ADR vs. Puma SE
Performance |
| Timeline |
| Asics Corp ADR |
| Puma SE |
Asics Corp and Puma SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asics Corp and Puma SE
The main advantage of trading using opposite Asics Corp and Puma SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asics Corp position performs unexpectedly, Puma SE 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 Puma SE will offset losses from the drop in Puma SE's long position.| Asics Corp vs. American Rebel Holdings | Asics Corp vs. Adidas AG | Asics Corp vs. American Rebel Holdings | Asics Corp vs. Adidas AG ADR |
| Puma SE vs. Asics Corp ADR | Puma SE vs. Samsonite International SA | Puma SE vs. Adidas AG ADR | Puma SE vs. Wolverine World Wide |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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