Correlation Between Aritzia and Spin Master
Can any of the company-specific risk be diversified away by investing in both Aritzia and Spin Master 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 Aritzia and Spin Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aritzia and Spin Master Corp, you can compare the effects of market volatilities on Aritzia and Spin Master 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 Aritzia with a short position of Spin Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aritzia and Spin Master.
Diversification Opportunities for Aritzia and Spin Master
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aritzia and Spin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aritzia and Spin Master Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spin Master Corp and Aritzia 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 Aritzia are associated (or correlated) with Spin Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spin Master Corp has no effect on the direction of Aritzia i.e., Aritzia and Spin Master go up and down completely randomly.
Pair Corralation between Aritzia and Spin Master
Assuming the 90 days trading horizon Aritzia is expected to generate 1.52 times more return on investment than Spin Master. However, Aritzia is 1.52 times more volatile than Spin Master Corp. It trades about 0.08 of its potential returns per unit of risk. Spin Master Corp is currently generating about 0.0 per unit of risk. If you would invest 2,484 in Aritzia on August 26, 2024 and sell it today you would earn a total of 1,897 from holding Aritzia or generate 76.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aritzia vs. Spin Master Corp
Performance |
| Timeline |
| Aritzia |
| Spin Master Corp |
Aritzia and Spin Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aritzia and Spin Master
The main advantage of trading using opposite Aritzia and Spin Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aritzia position performs unexpectedly, Spin Master 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 Spin Master will offset losses from the drop in Spin Master's long position.| Aritzia vs. Canada Goose Holdings | Aritzia vs. Restaurant Brands International | Aritzia vs. Lightspeed Commerce | Aritzia vs. goeasy |
| Spin Master vs. Kinaxis | Spin Master vs. Premium Brands Holdings | Spin Master vs. Gildan Activewear | Spin Master vs. CCL Industries |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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