Correlation Between PVH Corp and Pandora AS
Can any of the company-specific risk be diversified away by investing in both PVH Corp and Pandora AS 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 PVH Corp and Pandora AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PVH Corp and Pandora AS, you can compare the effects of market volatilities on PVH Corp and Pandora AS 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 PVH Corp with a short position of Pandora AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVH Corp and Pandora AS.
Diversification Opportunities for PVH Corp and Pandora AS
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between PVH and Pandora is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding PVH Corp and Pandora AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pandora AS and PVH Corp 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 PVH Corp are associated (or correlated) with Pandora AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pandora AS has no effect on the direction of PVH Corp i.e., PVH Corp and Pandora AS go up and down completely randomly.
Pair Corralation between PVH Corp and Pandora AS
Considering the 90-day investment horizon PVH Corp is expected to generate 1.29 times more return on investment than Pandora AS. However, PVH Corp is 1.29 times more volatile than Pandora AS. It trades about 0.1 of its potential returns per unit of risk. Pandora AS is currently generating about -0.05 per unit of risk. If you would invest 9,605 in PVH Corp on August 25, 2024 and sell it today you would earn a total of 782.00 from holding PVH Corp or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PVH Corp vs. Pandora AS
Performance |
| Timeline |
| PVH Corp |
| Pandora AS |
PVH Corp and Pandora AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PVH Corp and Pandora AS
The main advantage of trading using opposite PVH Corp and Pandora AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVH Corp position performs unexpectedly, Pandora AS 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 Pandora AS will offset losses from the drop in Pandora AS's long position.| PVH Corp vs. VF Corporation | PVH Corp vs. Levi Strauss Co | PVH Corp vs. Under Armour A | PVH Corp vs. Columbia Sportswear |
| Pandora AS vs. Ralph Lauren Corp | Pandora AS vs. Tapestry | Pandora AS vs. PVH Corp | Pandora AS vs. Levi Strauss Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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