Correlation Between Puma SE and American Rebel
Can any of the company-specific risk be diversified away by investing in both Puma SE and American Rebel 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 Puma SE and American Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma SE and American Rebel Holdings, you can compare the effects of market volatilities on Puma SE and American Rebel 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 Puma SE with a short position of American Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma SE and American Rebel.
Diversification Opportunities for Puma SE and American Rebel
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and American is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Puma SE and American Rebel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Rebel Holdings and Puma SE 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 Puma SE are associated (or correlated) with American Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Rebel Holdings has no effect on the direction of Puma SE i.e., Puma SE and American Rebel go up and down completely randomly.
Pair Corralation between Puma SE and American Rebel
Assuming the 90 days horizon Puma SE is expected to under-perform the American Rebel. But the pink sheet apears to be less risky and, when comparing its historical volatility, Puma SE is 30.7 times less risky than American Rebel. The pink sheet trades about -0.01 of its potential returns per unit of risk. The American Rebel Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.50 in American Rebel Holdings on August 31, 2024 and sell it today you would lose (0.68) from holding American Rebel Holdings or give up 45.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.66% |
| Values | Daily Returns |
Puma SE vs. American Rebel Holdings
Performance |
| Timeline |
| Puma SE |
| American Rebel Holdings |
Puma SE and American Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma SE and American Rebel
The main advantage of trading using opposite Puma SE and American Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma SE position performs unexpectedly, American Rebel 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 American Rebel will offset losses from the drop in American Rebel's long position.| Puma SE vs. Asics Corp ADR | Puma SE vs. Samsonite International SA | Puma SE vs. Adidas AG ADR | Puma SE vs. Wolverine World Wide |
| American Rebel vs. Forward Industries | American Rebel vs. Designer Brands | American Rebel vs. Wolverine World Wide | American Rebel vs. On Holding |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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