Correlation Between PUMA SE and ASICS
Can any of the company-specific risk be diversified away by investing in both PUMA SE and ASICS 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 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, you can compare the effects of market volatilities on PUMA SE and ASICS 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUMA SE and ASICS.
Diversification Opportunities for PUMA SE and ASICS
Very good diversification
The 3 months correlation between PUMA and ASICS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PUMA SE and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of PUMA SE i.e., PUMA SE and ASICS go up and down completely randomly.
Pair Corralation between PUMA SE and ASICS
Assuming the 90 days horizon PUMA SE is expected to generate 623.36 times less return on investment than ASICS. But when comparing it to its historical volatility, PUMA SE is 26.94 times less risky than ASICS. It trades about 0.01 of its potential returns per unit of risk. ASICS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,215 in ASICS on August 24, 2024 and sell it today you would lose (685.00) from holding ASICS or give up 30.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.93% |
| Values | Daily Returns |
PUMA SE vs. ASICS
Performance |
| Timeline |
| PUMA SE |
| ASICS |
PUMA SE and ASICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUMA SE and ASICS
The main advantage of trading using opposite PUMA SE and ASICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUMA SE position performs unexpectedly, ASICS 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 will offset losses from the drop in ASICS's long position.The idea behind PUMA SE and ASICS 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.| ASICS vs. Asics Corp ADR | ASICS vs. American Rebel Holdings | ASICS vs. American Rebel Holdings | ASICS vs. Crocs Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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