Correlation Between Skechers USA and Aequi Acquisition
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Aequi Acquisition 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 Skechers USA and Aequi Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Aequi Acquisition Corp, you can compare the effects of market volatilities on Skechers USA and Aequi Acquisition 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 Skechers USA with a short position of Aequi Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Aequi Acquisition.
Diversification Opportunities for Skechers USA and Aequi Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Skechers and Aequi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Aequi Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aequi Acquisition Corp and Skechers USA 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 Skechers USA are associated (or correlated) with Aequi Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aequi Acquisition Corp has no effect on the direction of Skechers USA i.e., Skechers USA and Aequi Acquisition go up and down completely randomly.
Pair Corralation between Skechers USA and Aequi Acquisition
If you would invest 6,101 in Skechers USA on September 12, 2024 and sell it today you would earn a total of 1,000.00 from holding Skechers USA or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Skechers USA vs. Aequi Acquisition Corp
Performance |
| Timeline |
| Skechers USA |
| Aequi Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Aequi Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Aequi Acquisition
The main advantage of trading using opposite Skechers USA and Aequi Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Aequi Acquisition 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 Aequi Acquisition will offset losses from the drop in Aequi Acquisition's long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| Aequi Acquisition vs. Brandywine Realty Trust | Aequi Acquisition vs. Treasury Wine Estates | Aequi Acquisition vs. Li Auto | Aequi Acquisition vs. PACCAR Inc |
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.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |