Correlation Between Acushnet Holdings and Li Ning
Can any of the company-specific risk be diversified away by investing in both Acushnet Holdings and Li Ning 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 Acushnet Holdings and Li Ning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acushnet Holdings Corp and Li Ning Co, you can compare the effects of market volatilities on Acushnet Holdings and Li Ning 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 Acushnet Holdings with a short position of Li Ning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acushnet Holdings and Li Ning.
Diversification Opportunities for Acushnet Holdings and Li Ning
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acushnet and LNNGY is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Acushnet Holdings Corp and Li Ning Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Ning and Acushnet Holdings 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 Acushnet Holdings Corp are associated (or correlated) with Li Ning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Ning has no effect on the direction of Acushnet Holdings i.e., Acushnet Holdings and Li Ning go up and down completely randomly.
Pair Corralation between Acushnet Holdings and Li Ning
Given the investment horizon of 90 days Acushnet Holdings Corp is expected to generate 0.49 times more return on investment than Li Ning. However, Acushnet Holdings Corp is 2.06 times less risky than Li Ning. It trades about 0.06 of its potential returns per unit of risk. Li Ning Co is currently generating about -0.02 per unit of risk. If you would invest 6,470 in Acushnet Holdings Corp on September 2, 2024 and sell it today you would earn a total of 841.00 from holding Acushnet Holdings Corp or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acushnet Holdings Corp vs. Li Ning Co
Performance |
| Timeline |
| Acushnet Holdings Corp |
| Li Ning |
Acushnet Holdings and Li Ning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acushnet Holdings and Li Ning
The main advantage of trading using opposite Acushnet Holdings and Li Ning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acushnet Holdings position performs unexpectedly, Li Ning 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 Li Ning will offset losses from the drop in Li Ning's long position.| Acushnet Holdings vs. Bowlero Corp | Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment |
| Li Ning vs. YETI Holdings | Li Ning vs. Callaway Golf | Li Ning vs. Acushnet Holdings Corp | Li Ning vs. Planet Fitness |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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