Correlation Between Shimano and American Outdoor
Can any of the company-specific risk be diversified away by investing in both Shimano and American Outdoor 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 Shimano and American Outdoor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shimano and American Outdoor Brands, you can compare the effects of market volatilities on Shimano and American Outdoor 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 Shimano with a short position of American Outdoor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shimano and American Outdoor.
Diversification Opportunities for Shimano and American Outdoor
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shimano and American is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shimano and American Outdoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Outdoor Brands and Shimano 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 Shimano are associated (or correlated) with American Outdoor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Outdoor Brands has no effect on the direction of Shimano i.e., Shimano and American Outdoor go up and down completely randomly.
Pair Corralation between Shimano and American Outdoor
Assuming the 90 days horizon Shimano is expected to generate 0.75 times more return on investment than American Outdoor. However, Shimano is 1.34 times less risky than American Outdoor. It trades about 0.11 of its potential returns per unit of risk. American Outdoor Brands is currently generating about -0.19 per unit of risk. If you would invest 13,879 in Shimano on December 23, 2024 and sell it today you would earn a total of 871.00 from holding Shimano or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shimano vs. American Outdoor Brands
Performance |
| Timeline |
| Shimano |
| American Outdoor Brands |
Shimano and American Outdoor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shimano and American Outdoor
The main advantage of trading using opposite Shimano and American Outdoor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shimano position performs unexpectedly, American Outdoor 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 American Outdoor will offset losses from the drop in American Outdoor's long position.| Shimano vs. Yamaha Corp DRC | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. Nikon Corp |
| American Outdoor vs. Clarus Corp | American Outdoor vs. Escalade Incorporated | American Outdoor vs. Johnson Outdoors | American Outdoor vs. JAKKS Pacific |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |