Correlation Between Skechers USA and 48242WAC0
Specify exactly 2 symbols:
By analyzing existing cross correlation between Skechers USA and KBR INC 475, you can compare the effects of market volatilities on Skechers USA and 48242WAC0 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 48242WAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and 48242WAC0.
Diversification Opportunities for Skechers USA and 48242WAC0
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skechers and 48242WAC0 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and KBR INC 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBR INC 475 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 48242WAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBR INC 475 has no effect on the direction of Skechers USA i.e., Skechers USA and 48242WAC0 go up and down completely randomly.
Pair Corralation between Skechers USA and 48242WAC0
Considering the 90-day investment horizon Skechers USA is expected to under-perform the 48242WAC0. In addition to that, Skechers USA is 3.13 times more volatile than KBR INC 475. It trades about -0.2 of its total potential returns per unit of risk. KBR INC 475 is currently generating about -0.23 per unit of volatility. If you would invest 9,525 in KBR INC 475 on November 28, 2024 and sell it today you would lose (337.00) from holding KBR INC 475 or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Skechers USA vs. KBR INC 475
Performance |
| Timeline |
| Skechers USA |
| KBR INC 475 |
Skechers USA and 48242WAC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and 48242WAC0
The main advantage of trading using opposite Skechers USA and 48242WAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, 48242WAC0 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 48242WAC0 will offset losses from the drop in 48242WAC0's long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| 48242WAC0 vs. AEP TEX INC | 48242WAC0 vs. iShares Global Consumer | 48242WAC0 vs. GE Aerospace | 48242WAC0 vs. The Coca Cola |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |