Correlation Between Skechers USA and Fast Radius
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Fast Radius 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 Fast Radius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Fast Radius, you can compare the effects of market volatilities on Skechers USA and Fast Radius 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 Fast Radius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Fast Radius.
Diversification Opportunities for Skechers USA and Fast Radius
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skechers and Fast is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Fast Radius in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Radius 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 Fast Radius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Radius has no effect on the direction of Skechers USA i.e., Skechers USA and Fast Radius go up and down completely randomly.
Pair Corralation between Skechers USA and Fast Radius
Considering the 90-day investment horizon Skechers USA is expected to generate 252.81 times less return on investment than Fast Radius. But when comparing it to its historical volatility, Skechers USA is 51.78 times less risky than Fast Radius. It trades about 0.06 of its potential returns per unit of risk. Fast Radius is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Fast Radius on September 13, 2024 and sell it today you would earn a total of 0.09 from holding Fast Radius or generate 128.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.86% |
| Values | Daily Returns |
Skechers USA vs. Fast Radius
Performance |
| Timeline |
| Skechers USA |
| Fast Radius |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Fast Radius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Fast Radius
The main advantage of trading using opposite Skechers USA and Fast Radius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Fast Radius 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 Fast Radius will offset losses from the drop in Fast Radius' long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| Fast Radius vs. Acumen Pharmaceuticals | Fast Radius vs. Park Hotels Resorts | Fast Radius vs. Starbucks | Fast Radius vs. Ardelyx |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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