Correlation Between Hasbro and Amer Sports,
Can any of the company-specific risk be diversified away by investing in both Hasbro and Amer Sports, 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 Hasbro and Amer Sports, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and Amer Sports,, you can compare the effects of market volatilities on Hasbro and Amer Sports, 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 Hasbro with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and Amer Sports,.
Diversification Opportunities for Hasbro and Amer Sports,
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hasbro and Amer is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Hasbro 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 Hasbro Inc are associated (or correlated) with Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of Hasbro i.e., Hasbro and Amer Sports, go up and down completely randomly.
Pair Corralation between Hasbro and Amer Sports,
Considering the 90-day investment horizon Hasbro Inc is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, Hasbro Inc is 2.59 times less risky than Amer Sports,. The stock trades about -0.04 of its potential returns per unit of risk. The Amer Sports, is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 1,822 in Amer Sports, on August 30, 2024 and sell it today you would earn a total of 765.00 from holding Amer Sports, or generate 41.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hasbro Inc vs. Amer Sports,
Performance |
| Timeline |
| Hasbro Inc |
| Amer Sports, |
Hasbro and Amer Sports, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and Amer Sports,
The main advantage of trading using opposite Hasbro and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, Amer Sports, 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 Amer Sports, will offset losses from the drop in Amer Sports,'s long position.The idea behind Hasbro Inc and Amer Sports, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amer Sports, vs. Cedar Realty Trust | Amer Sports, vs. Glacier Bancorp | Amer Sports, vs. ATRenew Inc DRC | Amer Sports, vs. Lululemon Athletica |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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