Correlation Between PUMA SE and Puma SE
Can any of the company-specific risk be diversified away by investing in both PUMA SE and Puma SE 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 Puma SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUMA SE and Puma SE, you can compare the effects of market volatilities on PUMA SE and Puma SE 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 Puma SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUMA SE and Puma SE.
Diversification Opportunities for PUMA SE and Puma SE
Almost no diversification
The 3 months correlation between PUMA and Puma is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PUMA SE and Puma SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma SE 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 Puma SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma SE has no effect on the direction of PUMA SE i.e., PUMA SE and Puma SE go up and down completely randomly.
Pair Corralation between PUMA SE and Puma SE
Assuming the 90 days horizon PUMA SE is expected to generate 0.77 times more return on investment than Puma SE. However, PUMA SE is 1.29 times less risky than Puma SE. It trades about 0.0 of its potential returns per unit of risk. Puma SE is currently generating about -0.04 per unit of risk. If you would invest 464.00 in PUMA SE on August 28, 2024 and sell it today you would lose (1.00) from holding PUMA SE or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUMA SE vs. Puma SE
Performance |
| Timeline |
| PUMA SE |
| Puma SE |
PUMA SE and Puma SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUMA SE and Puma SE
The main advantage of trading using opposite PUMA SE and Puma SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUMA SE position performs unexpectedly, Puma SE 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 Puma SE will offset losses from the drop in Puma SE'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 |
| Puma SE vs. American Rebel Holdings | Puma SE vs. American Rebel Holdings | Puma SE vs. Crocs Inc | Puma SE 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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