Correlation Between Skechers USA and 097023AQ8
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By analyzing existing cross correlation between Skechers USA and BA 75 15 AUG 42, you can compare the effects of market volatilities on Skechers USA and 097023AQ8 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 097023AQ8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and 097023AQ8.
Diversification Opportunities for Skechers USA and 097023AQ8
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skechers and 097023AQ8 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and BA 75 15 AUG 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 097023AQ8 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 097023AQ8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 097023AQ8 has no effect on the direction of Skechers USA i.e., Skechers USA and 097023AQ8 go up and down completely randomly.
Pair Corralation between Skechers USA and 097023AQ8
Considering the 90-day investment horizon Skechers USA is expected to generate 0.57 times more return on investment than 097023AQ8. However, Skechers USA is 1.76 times less risky than 097023AQ8. It trades about 0.1 of its potential returns per unit of risk. BA 75 15 AUG 42 is currently generating about -0.18 per unit of risk. If you would invest 6,198 in Skechers USA on September 3, 2024 and sell it today you would earn a total of 184.00 from holding Skechers USA or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.0% |
| Values | Daily Returns |
Skechers USA vs. BA 75 15 AUG 42
Performance |
| Timeline |
| Skechers USA |
| 097023AQ8 |
Skechers USA and 097023AQ8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and 097023AQ8
The main advantage of trading using opposite Skechers USA and 097023AQ8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, 097023AQ8 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 097023AQ8 will offset losses from the drop in 097023AQ8's long position.| Skechers USA vs. Designer Brands | Skechers USA vs. Steven Madden | Skechers USA vs. Weyco Group | Skechers USA vs. Rocky Brands |
| 097023AQ8 vs. Mannatech Incorporated | 097023AQ8 vs. Skechers USA | 097023AQ8 vs. Finnair Oyj | 097023AQ8 vs. Spectrum Brands Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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