Correlation Between SVB Financial and Under Armour
Can any of the company-specific risk be diversified away by investing in both SVB Financial and Under Armour 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 SVB Financial and Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and Under Armour, you can compare the effects of market volatilities on SVB Financial and Under Armour 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 SVB Financial with a short position of Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Under Armour.
Diversification Opportunities for SVB Financial and Under Armour
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Under is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Under Armour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour and SVB Financial 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 SVB Financial Group are associated (or correlated) with Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour has no effect on the direction of SVB Financial i.e., SVB Financial and Under Armour go up and down completely randomly.
Pair Corralation between SVB Financial and Under Armour
If you would invest 12,007 in SVB Financial Group on September 28, 2024 and sell it today you would earn a total of 0.00 from holding SVB Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVB Financial Group vs. Under Armour
Performance |
| Timeline |
| SVB Financial Group |
| Under Armour |
SVB Financial and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Under Armour
The main advantage of trading using opposite SVB Financial and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.| SVB Financial vs. Teladoc Health | SVB Financial vs. Technos SA | SVB Financial vs. BIONTECH SE DRN | SVB Financial vs. Bio Techne |
| Under Armour vs. Nordon Indstrias Metalrgicas | Under Armour vs. Metalurgica Gerdau SA | Under Armour vs. Paycom Software | Under Armour vs. SVB Financial Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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