Correlation Between Skechers USA and GobiMin
Can any of the company-specific risk be diversified away by investing in both Skechers USA and GobiMin 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 GobiMin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and GobiMin, you can compare the effects of market volatilities on Skechers USA and GobiMin 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 GobiMin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and GobiMin.
Diversification Opportunities for Skechers USA and GobiMin
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skechers and GobiMin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and GobiMin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GobiMin 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 GobiMin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GobiMin has no effect on the direction of Skechers USA i.e., Skechers USA and GobiMin go up and down completely randomly.
Pair Corralation between Skechers USA and GobiMin
If you would invest 127.00 in GobiMin on September 14, 2024 and sell it today you would earn a total of 0.00 from holding GobiMin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Skechers USA vs. GobiMin
Performance |
| Timeline |
| Skechers USA |
| GobiMin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and GobiMin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and GobiMin
The main advantage of trading using opposite Skechers USA and GobiMin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, GobiMin 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 GobiMin will offset losses from the drop in GobiMin's long position.| Skechers USA vs. Deckers Outdoor | Skechers USA vs. On Holding | Skechers USA vs. Steven Madden | Skechers USA vs. Crocs Inc |
| GobiMin vs. Toro Co | GobiMin vs. Skechers USA | GobiMin vs. RBC Bearings Incorporated | GobiMin vs. Raytech Holding Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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