Correlation Between PUMA SE and Samsonite International
Can any of the company-specific risk be diversified away by investing in both PUMA SE and Samsonite International 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 Samsonite International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUMA SE and Samsonite International SA, you can compare the effects of market volatilities on PUMA SE and Samsonite International 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 Samsonite International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUMA SE and Samsonite International.
Diversification Opportunities for PUMA SE and Samsonite International
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PUMA and Samsonite is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PUMA SE and Samsonite International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsonite International 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 Samsonite International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsonite International has no effect on the direction of PUMA SE i.e., PUMA SE and Samsonite International go up and down completely randomly.
Pair Corralation between PUMA SE and Samsonite International
Assuming the 90 days horizon PUMA SE is expected to generate 0.71 times more return on investment than Samsonite International. However, PUMA SE is 1.41 times less risky than Samsonite International. It trades about 0.1 of its potential returns per unit of risk. Samsonite International SA is currently generating about 0.0 per unit of risk. If you would invest 415.00 in PUMA SE on August 28, 2024 and sell it today you would earn a total of 48.00 from holding PUMA SE or generate 11.57% 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. Samsonite International SA
Performance |
| Timeline |
| PUMA SE |
| Samsonite International |
PUMA SE and Samsonite International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUMA SE and Samsonite International
The main advantage of trading using opposite PUMA SE and Samsonite International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUMA SE position performs unexpectedly, Samsonite International 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 Samsonite International will offset losses from the drop in Samsonite International'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 |
| Samsonite International vs. American Rebel Holdings | Samsonite International vs. American Rebel Holdings | Samsonite International vs. Crocs Inc | Samsonite International 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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