Correlation Between Skechers USA and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Quanergy Systems 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 Quanergy Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Quanergy Systems, you can compare the effects of market volatilities on Skechers USA and Quanergy Systems 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 Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Quanergy Systems.
Diversification Opportunities for Skechers USA and Quanergy Systems
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skechers and Quanergy is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems 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 Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Skechers USA i.e., Skechers USA and Quanergy Systems go up and down completely randomly.
Pair Corralation between Skechers USA and Quanergy Systems
If you would invest 6,157 in Skechers USA on August 31, 2024 and sell it today you would earn a total of 225.00 from holding Skechers USA or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Skechers USA vs. Quanergy Systems
Performance |
| Timeline |
| Skechers USA |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Quanergy Systems
The main advantage of trading using opposite Skechers USA and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| Quanergy Systems vs. Highway Holdings Limited | Quanergy Systems vs. RBC Bearings Incorporated | Quanergy Systems vs. East Africa Metals | Quanergy Systems vs. Eldorado Gold 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 CEOs Directory module to screen CEOs from public companies around the world.
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