Correlation Between Superior Uniform and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Hugo Boss 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 Superior Uniform and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Hugo Boss AG, you can compare the effects of market volatilities on Superior Uniform and Hugo Boss 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 Superior Uniform with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Hugo Boss.
Diversification Opportunities for Superior Uniform and Hugo Boss
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and Hugo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Superior Uniform i.e., Superior Uniform and Hugo Boss go up and down completely randomly.
Pair Corralation between Superior Uniform and Hugo Boss
Considering the 90-day investment horizon Superior Uniform Group is expected to under-perform the Hugo Boss. But the stock apears to be less risky and, when comparing its historical volatility, Superior Uniform Group is 1.07 times less risky than Hugo Boss. The stock trades about -0.28 of its potential returns per unit of risk. The Hugo Boss AG is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Hugo Boss AG on December 24, 2024 and sell it today you would lose (122.00) from holding Hugo Boss AG or give up 13.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. Hugo Boss AG
Performance |
| Timeline |
| Superior Uniform |
| Hugo Boss AG |
Superior Uniform and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Hugo Boss
The main advantage of trading using opposite Superior Uniform and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. Gildan Activewear |
| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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