Correlation Between Skechers USA and Mothercare Plc
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Mothercare Plc 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 Mothercare Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Mothercare Plc Ord, you can compare the effects of market volatilities on Skechers USA and Mothercare Plc 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 Mothercare Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Mothercare Plc.
Diversification Opportunities for Skechers USA and Mothercare Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skechers and Mothercare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Mothercare Plc Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mothercare Plc Ord 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 Mothercare Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mothercare Plc Ord has no effect on the direction of Skechers USA i.e., Skechers USA and Mothercare Plc go up and down completely randomly.
Pair Corralation between Skechers USA and Mothercare Plc
If you would invest 6,146 in Skechers USA on September 1, 2024 and sell it today you would earn a total of 236.00 from holding Skechers USA or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Skechers USA vs. Mothercare Plc Ord
Performance |
| Timeline |
| Skechers USA |
| Mothercare Plc Ord |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Mothercare Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Mothercare Plc
The main advantage of trading using opposite Skechers USA and Mothercare Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Mothercare Plc 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 Mothercare Plc will offset losses from the drop in Mothercare Plc's long position.| Skechers USA vs. Deckers Outdoor | Skechers USA vs. On Holding | Skechers USA vs. Crocs Inc | Skechers USA vs. Designer Brands |
| Mothercare Plc vs. Amkor Technology | Mothercare Plc vs. Skechers USA | Mothercare Plc vs. GMS Inc | Mothercare Plc vs. Avient Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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