Correlation Between Planet 13 and Skechers USA
Can any of the company-specific risk be diversified away by investing in both Planet 13 and Skechers USA 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 Planet 13 and Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet 13 Holdings and Skechers USA, you can compare the effects of market volatilities on Planet 13 and Skechers USA 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 Planet 13 with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet 13 and Skechers USA.
Diversification Opportunities for Planet 13 and Skechers USA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Planet and Skechers is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Planet 13 Holdings and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and Planet 13 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 Planet 13 Holdings are associated (or correlated) with Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of Planet 13 i.e., Planet 13 and Skechers USA go up and down completely randomly.
Pair Corralation between Planet 13 and Skechers USA
Given the investment horizon of 90 days Planet 13 Holdings is expected to under-perform the Skechers USA. In addition to that, Planet 13 is 2.81 times more volatile than Skechers USA. It trades about -0.02 of its total potential returns per unit of risk. Skechers USA is currently generating about 0.05 per unit of volatility. If you would invest 5,325 in Skechers USA on September 12, 2024 and sell it today you would earn a total of 1,714 from holding Skechers USA or generate 32.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.49% |
| Values | Daily Returns |
Planet 13 Holdings vs. Skechers USA
Performance |
| Timeline |
| Planet 13 Holdings |
| Skechers USA |
Planet 13 and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet 13 and Skechers USA
The main advantage of trading using opposite Planet 13 and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet 13 position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA's long position.| Planet 13 vs. Skechers USA | Planet 13 vs. Mediag3 | Planet 13 vs. Procter Gamble | Planet 13 vs. Steven Madden |
| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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