Correlation Between Skechers USA and TNEMAK
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By analyzing existing cross correlation between Skechers USA and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on Skechers USA and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and TNEMAK.
Diversification Opportunities for Skechers USA and TNEMAK
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skechers and TNEMAK is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of Skechers USA i.e., Skechers USA and TNEMAK go up and down completely randomly.
Pair Corralation between Skechers USA and TNEMAK
Considering the 90-day investment horizon Skechers USA is expected to generate 1.22 times more return on investment than TNEMAK. However, Skechers USA is 1.22 times more volatile than TNEMAK 3625 28 JUN 31. It trades about 0.06 of its potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.01 per unit of risk. If you would invest 4,200 in Skechers USA on September 13, 2024 and sell it today you would earn a total of 2,825 from holding Skechers USA or generate 67.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 18.38% |
| Values | Daily Returns |
Skechers USA vs. TNEMAK 3625 28 JUN 31
Performance |
| Timeline |
| Skechers USA |
| TNEMAK 3625 28 |
Skechers USA and TNEMAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and TNEMAK
The main advantage of trading using opposite Skechers USA and TNEMAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, TNEMAK 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 TNEMAK will offset losses from the drop in TNEMAK's long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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