Correlation Between Scilex Holding and Under Armour
Can any of the company-specific risk be diversified away by investing in both Scilex Holding 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 Scilex Holding and Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scilex Holding and Under Armour C, you can compare the effects of market volatilities on Scilex Holding 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 Scilex Holding with a short position of Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scilex Holding and Under Armour.
Diversification Opportunities for Scilex Holding and Under Armour
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scilex and Under is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Scilex Holding and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C and Scilex Holding 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 Scilex Holding 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 C has no effect on the direction of Scilex Holding i.e., Scilex Holding and Under Armour go up and down completely randomly.
Pair Corralation between Scilex Holding and Under Armour
Assuming the 90 days horizon Scilex Holding is expected to generate 4.63 times more return on investment than Under Armour. However, Scilex Holding is 4.63 times more volatile than Under Armour C. It trades about 0.03 of its potential returns per unit of risk. Under Armour C is currently generating about -0.01 per unit of risk. If you would invest 124.00 in Scilex Holding on November 19, 2024 and sell it today you would lose (106.00) from holding Scilex Holding or give up 85.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Scilex Holding vs. Under Armour C
Performance |
| Timeline |
| Scilex Holding |
| Under Armour C |
Scilex Holding and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scilex Holding and Under Armour
The main advantage of trading using opposite Scilex Holding and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scilex Holding 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.| Scilex Holding vs. Amgen Inc | Scilex Holding vs. BCE Inc | Scilex Holding vs. Radcom | Scilex Holding vs. Todos Medical |
| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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