Correlation Between NYSE Composite and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Hugo Boss 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 NYSE Composite and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hugo Boss AG, you can compare the effects of market volatilities on NYSE Composite and Hugo Boss 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 NYSE Composite with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hugo Boss.
Diversification Opportunities for NYSE Composite and Hugo Boss
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Hugo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and NYSE Composite 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 NYSE Composite are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of NYSE Composite i.e., NYSE Composite and Hugo Boss go up and down completely randomly.
Pair Corralation between NYSE Composite and Hugo Boss
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.23 times more return on investment than Hugo Boss. However, NYSE Composite is 4.43 times less risky than Hugo Boss. It trades about 0.13 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.04 per unit of risk. If you would invest 1,588,163 in NYSE Composite on September 14, 2024 and sell it today you would earn a total of 388,746 from holding NYSE Composite or generate 24.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.27% |
| Values | Daily Returns |
NYSE Composite vs. Hugo Boss AG
Performance |
| Timeline |
NYSE Composite and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hugo Boss AG
Pair trading matchups for Hugo Boss
Pair Trading with NYSE Composite and Hugo Boss
The main advantage of trading using opposite NYSE Composite and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Allient | NYSE Composite vs. Ecovyst | NYSE Composite vs. CTS Corporation |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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