Correlation Between Hugo Boss and VF
Can any of the company-specific risk be diversified away by investing in both Hugo Boss and VF 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 Hugo Boss and VF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugo Boss AG and VF Corporation, you can compare the effects of market volatilities on Hugo Boss and VF 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 Hugo Boss with a short position of VF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugo Boss and VF.
Diversification Opportunities for Hugo Boss and VF
Average diversification
The 3 months correlation between Hugo and VF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hugo Boss AG and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation and Hugo Boss 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 Hugo Boss AG are associated (or correlated) with VF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corporation has no effect on the direction of Hugo Boss i.e., Hugo Boss and VF go up and down completely randomly.
Pair Corralation between Hugo Boss and VF
Assuming the 90 days horizon Hugo Boss AG is expected to under-perform the VF. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hugo Boss AG is 1.25 times less risky than VF. The pink sheet trades about -0.04 of its potential returns per unit of risk. The VF Corporation is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,667 in VF Corporation on September 14, 2024 and sell it today you would earn a total of 441.00 from holding VF Corporation or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.91% |
| Values | Daily Returns |
Hugo Boss AG vs. VF Corp.
Performance |
| Timeline |
| Hugo Boss AG |
| VF Corporation |
Hugo Boss and VF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugo Boss and VF
The main advantage of trading using opposite Hugo Boss and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugo Boss position performs unexpectedly, VF 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 VF will offset losses from the drop in VF's long position.| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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