Correlation Between Canada Goose and Malibu Boats
Can any of the company-specific risk be diversified away by investing in both Canada Goose and Malibu Boats 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 Canada Goose and Malibu Boats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Goose Holdings and Malibu Boats, you can compare the effects of market volatilities on Canada Goose and Malibu Boats 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 Canada Goose with a short position of Malibu Boats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and Malibu Boats.
Diversification Opportunities for Canada Goose and Malibu Boats
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canada and Malibu is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats and Canada Goose 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 Canada Goose Holdings are associated (or correlated) with Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of Canada Goose i.e., Canada Goose and Malibu Boats go up and down completely randomly.
Pair Corralation between Canada Goose and Malibu Boats
Given the investment horizon of 90 days Canada Goose Holdings is expected to generate 0.67 times more return on investment than Malibu Boats. However, Canada Goose Holdings is 1.49 times less risky than Malibu Boats. It trades about 0.19 of its potential returns per unit of risk. Malibu Boats is currently generating about -0.01 per unit of risk. If you would invest 944.00 in Canada Goose Holdings on September 18, 2024 and sell it today you would earn a total of 66.00 from holding Canada Goose Holdings or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canada Goose Holdings vs. Malibu Boats
Performance |
| Timeline |
| Canada Goose Holdings |
| Malibu Boats |
Canada Goose and Malibu Boats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Goose and Malibu Boats
The main advantage of trading using opposite Canada Goose and Malibu Boats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose position performs unexpectedly, Malibu Boats 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 Malibu Boats will offset losses from the drop in Malibu Boats' long position.| Canada Goose vs. PVH Corp | Canada Goose vs. VF Corporation | Canada Goose vs. Levi Strauss Co | Canada Goose vs. Under Armour A |
| Malibu Boats vs. Polaris Industries | Malibu Boats vs. MCBC Holdings | Malibu Boats vs. LCI Industries | Malibu Boats vs. Thor 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 Stocks Directory module to find actively traded stocks across global markets.
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