Correlation Between Skechers USA and Incjet Holding
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Incjet Holding 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 Incjet Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Incjet Holding, you can compare the effects of market volatilities on Skechers USA and Incjet Holding 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 Incjet Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Incjet Holding.
Diversification Opportunities for Skechers USA and Incjet Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skechers and Incjet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Incjet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incjet Holding 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 Incjet Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incjet Holding has no effect on the direction of Skechers USA i.e., Skechers USA and Incjet Holding go up and down completely randomly.
Pair Corralation between Skechers USA and Incjet Holding
If you would invest 6,101 in Skechers USA on September 12, 2024 and sell it today you would earn a total of 986.00 from holding Skechers USA or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Skechers USA vs. Incjet Holding
Performance |
| Timeline |
| Skechers USA |
| Incjet Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Incjet Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Incjet Holding
The main advantage of trading using opposite Skechers USA and Incjet Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Incjet Holding 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 Incjet Holding will offset losses from the drop in Incjet Holding's long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| Incjet Holding vs. Kura Sushi USA | Incjet Holding vs. Shake Shack | Incjet Holding vs. Boot Barn Holdings | Incjet Holding vs. Ralph Lauren 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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