Correlation Between Skechers USA and Lucas GC
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Lucas GC 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 Lucas GC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Lucas GC Limited, you can compare the effects of market volatilities on Skechers USA and Lucas GC 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 Lucas GC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Lucas GC.
Diversification Opportunities for Skechers USA and Lucas GC
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skechers and Lucas is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Lucas GC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucas GC Limited 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 Lucas GC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucas GC Limited has no effect on the direction of Skechers USA i.e., Skechers USA and Lucas GC go up and down completely randomly.
Pair Corralation between Skechers USA and Lucas GC
Considering the 90-day investment horizon Skechers USA is expected to generate 0.17 times more return on investment than Lucas GC. However, Skechers USA is 6.04 times less risky than Lucas GC. It trades about 0.07 of its potential returns per unit of risk. Lucas GC Limited is currently generating about -0.14 per unit of risk. If you would invest 6,186 in Skechers USA on August 29, 2024 and sell it today you would earn a total of 137.00 from holding Skechers USA or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skechers USA vs. Lucas GC Limited
Performance |
| Timeline |
| Skechers USA |
| Lucas GC Limited |
Skechers USA and Lucas GC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Lucas GC
The main advantage of trading using opposite Skechers USA and Lucas GC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Lucas GC 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 Lucas GC will offset losses from the drop in Lucas GC's long position.| Skechers USA vs. Steven Madden | Skechers USA vs. Caleres | Skechers USA vs. Weyco Group | Skechers USA vs. Designer Brands |
| Lucas GC vs. Repligen | Lucas GC vs. Weyco Group | Lucas GC vs. RBC Bearings Incorporated | Lucas GC vs. Skechers USA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world |