Correlation Between Puma SE and Asics Corp
Can any of the company-specific risk be diversified away by investing in both Puma SE and Asics Corp 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 Asics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma SE and Asics Corp ADR, you can compare the effects of market volatilities on Puma SE and Asics Corp 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 Asics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma SE and Asics Corp.
Diversification Opportunities for Puma SE and Asics Corp
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puma and Asics is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Puma SE and Asics Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asics Corp ADR 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 Asics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asics Corp ADR has no effect on the direction of Puma SE i.e., Puma SE and Asics Corp go up and down completely randomly.
Pair Corralation between Puma SE and Asics Corp
Assuming the 90 days horizon Puma SE is expected to under-perform the Asics Corp. In addition to that, Puma SE is 1.21 times more volatile than Asics Corp ADR. It trades about -0.04 of its total potential returns per unit of risk. Asics Corp ADR is currently generating about 0.27 per unit of volatility. If you would invest 1,730 in Asics Corp ADR on August 28, 2024 and sell it today you would earn a total of 223.00 from holding Asics Corp ADR or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma SE vs. Asics Corp ADR
Performance |
| Timeline |
| Puma SE |
| Asics Corp ADR |
Puma SE and Asics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma SE and Asics Corp
The main advantage of trading using opposite Puma SE and Asics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma SE position performs unexpectedly, Asics Corp 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 Asics Corp will offset losses from the drop in Asics Corp's long position.| Puma SE vs. American Rebel Holdings | Puma SE vs. American Rebel Holdings | Puma SE vs. Crocs Inc | Puma SE vs. On Holding |
| Asics Corp vs. American Rebel Holdings | Asics Corp vs. American Rebel Holdings | Asics Corp vs. Crocs Inc | Asics Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |